On Monday at 11:16 AM (Bangkok time), the share price of Gulf Development Public Company Limited (SET: GULF) dropped by 2.08% or THB 1.00 to THB 47.00, with a trading value of THB 204.25 million.
B.Grimm Power Public Company Limited (SET: BGRIM) remained unchanged at THB 10.20, with a trading value of THB 25.17 million.
Meanwhile, BCPG Public Company Limited (SET: BCPG) surged by 1.49% or THB 0.10 to THB 6.80, with a trading value of THB 27.34 million.
Krungsri Securities (KSS) sees a slightly negative outlook for power plant operators with business in Vietnam following reports that Vietnam Electricity (EVN) is lowering the purchase price for renewable energy.
This adjustment affects projects that have already signed Power Purchase Agreements (PPAs) and begun Commercial Operation Date (COD), reducing the FiT rate from 9.35 US cents to 7 US cents.
The initial impact is expected to be seen for GULF, BGRIM, and GUNKUL in 2Q25. While the adjustment is not anticipated to affect the P&L immediately, the difference in the contracted rate will be recorded temporarily as receivables. Negotiations between companies and EVN to reach a mutual agreement are currently ongoing.
Following these developments, KSS continues to favor GULF and BCPG as top picks in the sector, giving a ‘Buy’ recommendation with a 2025 target price of THB 56.5 and THB 8.0 per share, respectively. This is based on: i) limited impact from the aforementioned issue, ii) clear growth themes for both GULF and BCPG, and iii) their insulation from the power tariff reduction policy in Thailand.
