Analyst Expects GPSC and BGRIM to Benefit from High Electricity Price for May-August

Thailand’s Energy Regulatory Commission on Wednesday maintained the Feed-in Tariff for May to August at THB 0.3972 per unit, resulting in an electricity price of THB4.18 per unit, which is the same as the price during January to April.

Kasikorn Securities (KS) stated that the announcement was in line with expectations, which should be positive to power generator stocks, especially to SPPs that distribute electricity to industrial users namely; Global Power Synergy Public Company Limited (SET: GPSC) and B.Grimm Power Public Company Limited (SET: BGRIM) that have 25-30% of industrial users in its portfolio.

The analyst noted that if the regulator maintained electricity price at THB4.18 throughout 2024, it will add 10%, 8% and 1% of upside to its earnings forecasts for GPSC, BGRIM and Gulf Energy Development Public Company Limited (SET: GULF).

Additionally, KS maintained its “BUY” recommendations for GULF (TP 50.50), GPSC (TP 60) and BGRIM (TP 34.5)