Kiatnakin Phatra Sec Upgrades BGRIM and GPSC to “BUY” after Bottoming Out in 1H

Kiatnakin Phatra Securities (KKPS) has upgraded its recommendations on B.Grimm Power Public Company Limited (SET: BGRIM) and Global Power Synergy Public Company Limited (SET: GPSC) to “BUY”on positive margin outlook.


The securities company believed that both securities had bottomed out earlier this year and should gradually recover in 2H22 as gas prices should decline from THB420/MMBTU in 2022 to THB350/MMBTU in 2024 from mixed gas due to a shortfall in the Gulf of Thailand that led to a procurement of imported gas, but the portion will decline in the future.

KKPS estimated BGRIM’s net profit at THB1,200 million, THB2,500 million and THB3,000 million in 2022-24. Meanwhile, net profit of GPSC should reach THB3,400 million, THB5,800 million and THB8,000 million in 2022-24.

Based on the valuation, BGRIM is trading at 32x PE2024 and GPSC at 23x PE2024, both securities should be priced in all negativity and if the FT is increased, GPSC would recognize an additional THB350 million and THB300 million for BGRIM. The securities company stated that it preferred BGRIM over GPSC due to clearer capacity growth, giving a fair value for BGRIM at THB41 per share and for GPSC at THB72 per share.


BGRIM closed the morning session on July 11, 2022, at THB37.00, increased THB0.50 or 1.37% per share.

Meanwhile, GPSC closed the morning session at THB66.50, increased THB0.75 or 1.14% per share.