EGCO Stock Rises 5% after Reporting Better-than-Expected First-Quarter Earnings

The share price of Electricity Generating Public Company Limited (SET: EGCO) climbed by more than 5% in Thursday’s early morning trading session after the company reported 1Q22 earnings that exceeded market expectations.

As of 12.00 hrs. local time in Thailand, EGCO share price rose THB8.50/share, or 5.28% to THB169.50/share, with a trading value of THB836 million.


EGCO reported a net profit of THB4,115 million in 1Q22, an increase of 603% from a net profit of THB585 million in 1Q21. The increase was mainly due to higher operating profit from higher electricity sales of Paju ES and KEGCO. Additionally, the operating profit increased from the acquisitions of Linden Topco and Apex on June 4, 2021 and November 17, 2021, respectively. 


Capital Nomura Securities maintains its positive view on EGCO as the company’s operating performance in 1Q22 exceeded expectations by 27% due to higher electricity sales from the Paju ES project.

Recommend “BUY” with a target price of THB257.00 per share, as CNS believes EGCO will be less affected by geopolitical risks than its peers GPSC, BGRIM, and GULF, and the company is on an uptrend. The forward CAGR for 2022-23 is anticipated to be 5%.