KGI Maintains ‘Outperform’ Rating for GULF, Foreseeing Positivity for Long-Term Investment

In a recent report, KGI Securities highlighted GULF’s positive prospects amidst a share price decline driven by concerns over various factors such as the PDP2024 hearing, weak industrial demand, and rising LNG prices. Despite these challenges, GULF’s focus on IPP-based operations and strong SPPs with 25-year PPA contracts with EGAT positions it well for success in the market.

KGI anticipates that the upcoming PDP2024 may differ from the current draft, with potential opportunities arising from increased demand from AI data centers and the need for base-load power plants aligning with rising RE demand. GULF is well-placed to secure new RE projects and hydro projects, supported by its favorable debt headroom.

Moreover, the growth potential in data centers presents a significant opportunity for GULF in Thailand’s electricity market, alongside the surge in electric vehicles. The company’s collaboration with AIS and Singtel in setting up joint venture data centers further enhances its growth prospects.

Despite a recent 11% decline in GULF’s share price, KGI views this as an attractive opportunity for long-term investors, citing the company’s strong growth trajectory, partnerships, and solid balance sheet. The analyst maintains an ‘Outperform’ rating for GULF, with a target price of THB 50.00 per share.