On Thursday at 11:12 AM (Bangkok time), the share price of WHA Utilities and Power Public Company Limited (SET: WHAUP) surged 3.68% or THB 0.25 to THB 7.05, with a trading value of THB 95.12 million.
Kasikorn Securities (KS) wrote that the Thai equity market remains under pressure due to a correction in the global technology stocks. This follows a significant price rally in the sector, resulting in elevated valuations and ongoing uncertainty regarding the justification of large-scale technology investments. These factors have created short-term profit-taking actions.
Nevertheless, domestic factors continue to provide support, particularly through government measures that stimulate consumption and investment. A notable initiative is the Thailand FastPass program, which aims to reduce the approval and licensing timeframe for investment projects by 20-50%. This scheme specifically targets strategic industries such as data centers, AI infrastructure, semiconductors, electric vehicles, and clean energy. It is expected to enhance Thailand’s attractiveness in drawing increased foreign direct investment.
According to Kasikorn, WHAUP stands to benefit from the growth of the data center industry in Thailand. The brokerage estimates that the country’s data center capacity could increase from 600 megawatts in 2025 to 5 gigawatts by 2030, in line with investments from hyperscale operators and projects promoted by the Board of Investment (BOI).
Furthermore, WHA Group’s industrial estates are anticipated to support approximately 38% of the nation’s data center capacity. This development is seen as a key driver of continued industrial water sales growth for WHAUP and presents additional upside potential from future Direct Power Purchase Agreement (Direct PPA) projects.
Kasikorn has, therefore, upgraded its recommendation on WHAUP to ‘Buy’ with a target price of THB 7.55 per share, following an upward revision of its long-term profit forecasts. This reflects strong demand for industrial water. The company’s net profit is expected to grow at an average annual rate of 15% during 2026-2031, with substantial capacity for further expansion that does not require significant additional capital expenditure.
