RATCH Group Gains 2.6% as Analysts Maintain Positive Outlook in 2023 from Growth Projects

The share price of Ratch Group Public Company Limited (SET: RATCH) had been on a decline after posting a net loss in the fourth quarter last year. Still, analysts remain bullish on the Thai power producer for higher revenue income this year from its multiple growth projects.

Stock price of RATCH dropped 6.13% after the announcement of its annual financial statement on February 28, 2023, that showed a net loss of more than 200 million baht in the last quarter, which contrasted to its operation all year long that recorded billions of baht in the first nine months. The loss in 4Q22 was due to lower contribution from the investment in  Hongsa power plant (HPC), SPPs and hydro projects.


Still, analysts maintained a positive outlook on RATCH with a target price as high as THB57.00 per share.

Finansia Syrus Securities (FSS) expected RATCH’s earnings to rise in 2023-25, premised on 1) a high utilisation rate estimated at 85%-90% for HPC; and 2) equity capacity growth from: RATCH Cogen expansion (31MW, 2023), Ecowin (15MW, 2023), Ren Korat (13MW, 2024), NNEG expansion (12MW, 2024), Nexif Ben Tre (60MW, 2024), and HKP in Thailand (785MW, 2024-25).

FSS maintained a “BUY” recommendation with its SoTP-based TP of THB57. FSS believed that RATCH remains an attractive investment as a large-scale, IPP-driven company in Thailand with multiple growth projects.

Pi Securities (PI) also recommended “BUY” with a target price at THB55.00 per share, citing positive outlook in 2023 from the utilization of its proceeds in the investment of NEJV and Paiton that should boost RATCH’s production by 16%.

Asia Plus Securities (ASPS) stated that RATCH has a strong portfolio in the long-term through its investment in big projects overseas, which would be its main driving force. The deal with Paiton should be completed by the second quarter of this year, and the acquisition in Nexif will become its investment arm. ASPS recommended “BUY” with a target price at THB 51.00 per share, while noting that RATCH will also offer THB0.8 dividend payout for its 2H22 operations (total THB1.6 in 2022).


The share price of RATCH closed the morning session on Thursday at THB39.25 per share, increased THB1.00 or 2.61%.