Analysts from Krungsri Securities stated that Electricity Generating Public Company Limited (SET: EGCO)’s foreign investment has generated a long term growth as they had a “Neutral” following the analyst meeting with the company. The management noted that it will focus on investments that generate long-term growth overseas.
First is the profit-sharing growth from CDI Group that increased following the investment in infrastructure business after an initial public offering (IPO) in the Indonesia stock market. Second is the growth of APEX’s profit sharing that increased following the commercial operation date (COD) of the renewable energy project in the U.S. Third is the growth of Marcus Hook’s profit share that increased following the growth of its capacity payment (CP) in the PJM market.
Regarding the growth direction of CDI group, which Chandra Asri and EGCO hold 60% and 30% of its stock, respectively, there will be investments in KCE 37 MW solar power plant and phase two of KPE 200 MW power plant. The company also plans to expand the storage tank and invest in two gas and petrochemicals tankers, increasing the capacity by 10,000 – 17,200 DWT. In the long term aspect, Chandra Asri’s infrastructure business may spin-off some of its assets to the CDI group.
As for the APEX, which saw a strong growth according to the plan, its commercial operation capacity is at 1,062 MW and expected to reach 5,333 MW by the end of 2030. 85% of the company’s energy capacity that is commercially operated and in the middle of construction, which is a private PPA that sells electricity to IT and data center companies, would not face significant risk from the U.S. policy adjustment.
Regarding Marcus Hook, which is a 456 Equity MW LNG power plant in the U.S., it will benefit from the growth of CP, from 29 USD/MW-day to 270 USD/MW-day, in the PJM market. Meanwhile, the Milford and Dighton natural gas power plants, which generated a total of 196 Equity MW and sell energy to ISO-NE market, will receive limited benefit on power supply that is not as shortage as those in PJM market. Furthermore, QPL coal-fired power in the Philippines will experience major downtime while the company applied for contract extension during the third quarter. Its operation is expected to continue again in the fourth quarter.
EGCO continues to maintain its CAPEX goal this year at THB 30 billion, while studying the growth in Philippines and Taiwan markets. Still, its 3Q25 profit is expected to decline due to several factors. Nonetheless, Krungsri Securities recommended a “BUY” rating on EGCO, with a target price of THB 134 per share.
