GULF Surges Nearly 8% as Credit Suisse Points to 25% Earnings CAGR with Target Price at THB61

The share price of Gulf Energy Development Public Company Limited (SET: GULF) rose as much as 7.84% in the morning session on September 6, 2022, while its peers also saw slight increase as well.

GULF gained THB4.00 or 7.84% to THB55.00 per share, the top active value in the Thai stock market this morning.

The share price of B.Grimm Power Public Company Limited (SET: BGRIM) rose THB1.00 or 2.80% to THB36.75 per share.

Global Power Synergy Public Company Limited (SET: GPSC) increased THB1.00 or 1.51% to THB67.25 per share.


Credit Suisse wrote in the research after initiating its coverage on GULF with an Outperform rating and a target price of THB61.00 per share. The firm stated that surging energy costs are expected to widen the competitive gap for GULF that could use a cost pass-through PPAs to gain advantage against its peers that may experience a margin squeeze.

Meanwhile, Credit Suisse stated that it saw more growth opportunities for GULF as others may look to liquidate assets or become less aggressive in bidding for new projects.

The Swiss investment bank expected GULF to deliver 25% earnings CAGR and 15% expansion of equity MW capacity in five years’ time.

After spending almost half of its capex in the last three years on acquiring INTUCH as digital assets, 85% of GULF’s future capex in the next five years is expected to be spent on power-related business including gas and renewable power, both in Thailand and overseas, and LNG business.

Credit Suisse estimated GULF’s revenue in 2022 at THB92.3 billion (+94% YoY), while earnings were expected to come in at THB11.9 billion (+55% YoY).