Stocks in Focus on February 20, 2024: GPSC and TU

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on February 20, 2024.


Maybank Securities (Thailand) (MST) has given a “BUY” recommendation on Global Power Synergy Public Company Limited (SET: GPSC) with a target price at ฿58.00/share.

The expected EPS Growth for 2024 is projected at 118%, marking the most prominent growth among the power plants covered by our analysis. The primary support for this growth stems from the downward trend in natural gas prices anticipated this year. This trend includes the increased gas production from the Erawan field, scheduled to commence in 2024, which is expected to reduce the price of SPP’s pool gas. This reduction is positive for Spark Spread, consequently bolstering the operating results.

However, regarding the price of electricity, it is anticipated that pressure from government policy will intensify. In the short term, there are positive sentiments arising from two factors supporting stock prices: 1) Natural gas prices have experienced a drop not seen in over three years, and 2) Bond Yield has surpassed its peak.


KGI Securities (KGI) has given an “Outperform” rating on Thai Union Public Company Limited (SET: TU) with a target price at ฿19.60/share.

KGI stated that TU announced a 4Q23 net loss of Bt17.2bn, in line with our forecast. Excluding extra loss of Bt19.6bn from Red Lobster’s impairment, normalized profit came in at Bt1.24bn (+0.4% YoY, +3.1% QoQ). Normalized profit was 17% below our expectation due to lower-than-expected tax benefit. However, operating profit was in line with our forecast. Sales revenue recovered QoQ and it was the best quarter of the year driven by pet care and frozen and chilled seafood business. Meanwhile, Red Lobster reported a loss contribution of Bt522mn. We expect TU’s earnings to grow both YoY and QoQ in 1Q24F thanks mainly to the absence of loss contribution from Red Lobster after the impairment on the total remaining investment in 4Q23.