The share price of Electricity Generating Public Company Limited (SET: EGCO) gained 1.32% to trade at THB THB 115.50 per share in the morning session on Thursday as brokers are bullish on the company benefiting from baht appreciation and falling bond yield.
Maybank Securities (Thailand) (MST) wrote in a note that the U.S. 10-year bond yield has fallen 21 basis-points in September after producer inflation came in lower-than-expected. The drop supports the power plant sector in terms of costs. Meanwhile, the stronger baht provides the greatest upside to EGCO’s earnings within the group.
Maybank also noted that at the current price, EGCO is trading at 8.2x of FY26E Price-to-Earnings ratio, compared to the sector average of 18.2x. The stock also has a good dividend yield of 5.8%, which is the highest among power producers (sector average at 3.8%). This acts as a downside buffer for EGCO.
