Bualuang Securities (BLS) provided a positive outlook on GULF’s recent acquisition of the remaining stake in the 770-megawatt run-of-river Pak Lay Hydroelectric Power Project in Laos.
The brokerage firm highlighted that the project, which has secured a 29-year Power Purchase Agreement with EGAT and is expected to begin commercial operations in 2032, will likely deliver significant long-term benefits. Specifically, BLS anticipates that the deal could lift their core profit forecast for GULF by approximately 15–16% over the long run, and enhance its target price valuation by around 4 baht per share.
From a financial perspective, the brokerage expects GULF will shift from using the equity method to full consolidation for this investment, which could increase GULF’s debt by about 60 billion baht. Nevertheless, Bualuang Securities noted that GULF’s net debt-to-equity ratio remains low, projected at 0.5 times as of the end of Q2 2025, and believes the company is well-positioned to absorb the higher leverage. The firm maintains its “Buy” rating on GULF, citing strong fundamentals and capacity for continued growth.
Earlier today, Gulf Development Public Company Limited (SET: GULF) announced that Gulf Hydropower Holdings Private Limited, a wholly owned subsidiary of the Company, acquired the remaining 60% equity stake in Pak Lay Power Company Limited from SHK, with a total investment of approximately USD 128 million. The acquisition includes both equity and shareholder loans. As a result, the Company now directly and indirectly holds a 100% equity stake in Pak Lay Hydroelectric Power Project.
The reference was made in accordance to GULF’s investment in Pak Lay Hydroelectric Power Project, with an installed capacity of 770 megawatts, located on the Mekong River in Pak Lay District, Xayaburi Province, Lao People’s Democratic Republic (Lao PDR), through Pak Lay Power Company Limited, a joint venture in which the Company held a 40% equity stake and Sinohydro (Hong Kong) Holding Limited (“SHK”) held a 60% equity stake. The project has entered into a 29-year Power Purchase Agreement with the Electricity Generating Authority of Thailand (“EGAT”) to sell the entire electricity output to EGAT, with scheduled commercial operation in 2032.
This investment is aligned with the Company’s strategy to increase the proportion of power generation from renewable energy sources, in order to reduce greenhouse gas emissions and achieve Net Zero Emissions. The Pak Lay project is a run-of-the-river hydroelectric power plant that generates electricity using the natural water flow of the Mekong River, with no large reservoir and no water diversion from the river, resulting in equal water inflow and outflow. Therefore, the project will have no impact on the water volume in the Mekong River, in line with the Company’s commitment to sustainable and environmentally responsible development in the long term.
