CGS International Securities (Thailand) (CGSI) noted in its analysis that GULF Development Public Company Limited (SET: GULF) will host an extraordinary general meeting (EGM) at 2 p.m. on Friday to seek shareholders’ approval for the issuance and offering of debentures with a total value not exceeding THB 300 billion (or its equivalent in foreign currencies).
The analyst pointed out that the company’s recent move to pare down its holding in Kasikornbank (SET: KBANK) to 4.23% comes just ahead of this crucial shareholder meeting.
The timing, disclosed in a recent filing with Thai Securities and Exchange Commission, suggests a deliberate strategy, as GULF aims to secure the necessary three-quarters majority for its proposed debenture issuance.
Despite official statements citing investment diversification and dividend returns as the motives behind the company’s investment in KBANK, CGSI noted that there remains a possibility that GULF may look to raise its stake further down the line should central bank regulations—such as approval for ownership above 10%—allow for it.
If GULF does choose to increase its position in KBANK in the future, it would likely signal deeper strategic ambition for the company, according to the analyst.
Strengthened by a solid capital structure and significant debt capacity after its merger, GULF appears well-positioned to deploy fresh capital on strategic acquisitions, both in energy and financial services.
Following these developments, CGSI maintains an ‘Add’ rating for the company, keeping the target price unchanged at THB 63.00 per share.
The outlook is supported by anticipated record earnings in the second quarter of 2025, growing momentum in the company’s LNG operations, ongoing capacity growth, majority stake in the first round of renewable energy bidding, and steady profit inflows from its stakes in ADVANC and other power assets.
