Thai Power Plant Stocks Surge, Benefiting from Potential Ft Hikes

On Wednesday at 10:56 AM (Bangkok time), the share price of B.Grimm Power Public Company Limited (SET: BGRIM) increased by 1.37% or THB 0.30 to THB 22.20, with a trading value of THB 203.94 million.

Global Power Synergy Public Company Limited (SET: GPSC) rose by 3.75% or THB 1.50 to THB 41.50, with a trading value of THB 314.10 million.

Electricity Generating Public Company Limited (SET: EGCO) surged by 1.44% or THB 1.50 to THB 105.50, with a trading value of THB 12.83 million.

Gulf Energy Development Public Company Limited (SET: GULF) soared by 1.23% or THB 0.50 to THB 41.00, with a trading value of THB 168.59 million.


Krungsri Securities (KSS) stated in its report that the Energy Regulatory Commission (ERC) is scheduled to hold a meeting on July 10, 2024, with a key agenda item being the deliberation on raising the Ft rate (for Sep-Dec 2024) by an expected range of THB 0.2-0.4 per unit from the current rate of THB 4.18 per unit. This potential adjustment is anticipated to impact power plant stocks positively, particularly benefiting companies with a significant industrial client base such as GPSC and BGRIM.

The analyst initially projected that every THB 0.01 increase in the Ft rate would boost the profits of BGRIM and GPSC by 1.4% and 1.1% respectively. However, it is crucial to closely monitor this potential development as any deviation from the expected progress or a negative response from the ERC could lead to adverse implications for BGRIM and GPSC. Given the uncertainty surrounding this situation, the analyst advised a speculative-buy approach for GPSC and BGRIM as a short-term strategy, while seeing GULF as a investment-focused stock.


In addition, Liberator Securities gave a ‘BUY’ recommendation for BGRIM, with a target price of THB 30.00, citing potential benefits for SPP power plant stocks from the anticipated development. The analyst also predicted an increase in 2Q24 earnings for the stocks compared to the previous quarter, attributing this rise to the decrease in gas prices. Furthermore, it was anticipated that gas prices on a yearly basis would experience a slight decline from the elevated electricity base price recorded in 2Q23.