Krungsri Securities has reaffirmed its positive outlook on Gulf Development Public Company Limited (SET: GULF), naming it a top pick and maintaining a ‘Buy’ recommendation with a new 2026 target price of THB 70.00, compared to the recent closing price of THB 59.25.
The brokerage highlighted GULF’s recent acquisition of a 10% stake in Kasikornbank Public Company Limited (SET: KBANK), up from 4.53% previously, as an effective strategy for optimizing liquidity while waiting for additional upside from its data center ventures and new power plant projects under the latest Power Development Plan (PDP). Holding up to 10% in KBANK—just below the mandatory reporting threshold—enables GULF to manage its cash efficiently while maximizing dividend income and remaining nimble for future investments, particularly in data centers and renewable energy projects.
Krungsri has raised its 2026-2027 profit forecasts for GULF by an average of 15%. This revision is driven by increased dividend income from the larger KBANK stake, stronger than expected earnings from its telecom affiliate ADVANC, and the inclusion of the new 100MW GSA03 data center, which is expected to contribute an additional 2% annual profit. The broker now forecasts GULF’s net profit to grow by 20% in 2026 and 14% in 2027.
Looking ahead, GULF aims to expand its data center capacity to 300-500MW within five years, far above the existing 160MW, tapping into surging demand in Thailand’s high-potential data center sector. The group is also set to boost electricity supply under the updated PDP and stands out as a leading large-cap proxy for exposure to the robust Thai data center industry.
In the short term, Krungsri expects GULF’s normalized profit in 2025 to hit a new high of THB 7.55 billion, up 59% year-on-year, driven by rising equity income from ADVANC, Jackson, and BKR2, as well as the new solar power plants. The brokerage underscores GULF’s unique growth visibility and continuous upside potential, reaffirming its status as one of the top picks in the power and infrastructure sector.
