Gulf Development Public Company Limited (SET: GULF) has increased its stake in Kasikornbank Public Company Limited (SET: KBANK) by 0.5279%, now holding a total of 5.2304%, according to a filing published by the SEC.
InnovestX Securities (INVX) stated that the acquisition took place on May 13, 2025, and pushed GULF’s shareholding past the crucial 5% threshold. The average acquisition cost for GULF is estimated to be around 159 baht per share, compared to KBANK’s closing price of 163.5 baht today.
INVX has expressed a positive outlook on this development, particularly if GULF’s purchase is driven by a strategic partnership with KBANK. Several synergies are anticipated from this alliance: First, GULF stands to benefit from KBANK’s dividend yield, which ranges between 7-8% annually, outperforming GULF’s financial costs of 3.5-4%. Second, if GULF increases its stake beyond 20%, it would adopt the equity method, enhancing its profits substantially through equity income. Third, a plethora of new revenue streams could emerge from ventures in digital lending and FinTech, thanks to data sharing initiatives between Advanced Info Service Public Company Limited (SET: ADVANC), a subsidiary of GULF with 45 million mobile and 5 million broadband subscribers, and KBANK, with 23.1 million mobile banking accounts. This collaboration could pave the way for innovative FinTech solutions and digital banking operations.
However, should GULF decide to amplify its ownership in KBANK to more than 10%, the company would be required to seek approval from the Bank of Thailand, which would involve a procedural review and could take additional time.
INVX continues to recommend an “Outperform” rating on GULF with a target price of 70 baht, grounded in discounted cash flow (DCF) valuation metrics.
