UBS Global Research has reiterated its Buy rating on Gulf Development Public Company Limited (SET: GULF), underscoring the company’s strategic advantages as Thailand enters its next major power investment phase guided by the forthcoming Power Development Plan (PDP) 2026. UBS has raised its price target for GULF to THB 82 per share, reflecting the company’s strong track record in power purchase agreement (PPA) acquisition, leadership in data centre development, robust balance sheet, and low cost of capital.
Thailand is expected to require between 55-70GW of new power generation capacity from 2027 to 2037, led by 50-60GW of renewables and 6-9GW of gas, driven by net-zero initiatives, growing evening peak demand, and rapid data centre growth. In this scenario, GULF is well-positioned to capture the largest share of new megawatt opportunities among its listed peers.
UBS’ base case envisions GULF securing over 10GW of future PPAs and building about 249MW of data centre capacity in the coming 5-10 years, potentially adding THB 245 billion in value. Backed by a solid financial structure and an anticipated THB 430 billion in capital expenditure, GULF is viewed as well-equipped to seize these opportunities.
Valuations, according to UBS, remain mostly focused on GULF’s current earnings base and existing assets, while overlooking substantial future megawatt prospects and data centre business. UBS notes that adjusted for non-power investments—primarily its stakes in Advanced Info Service (AIS) and Kasikornbank (KBANK)—the company’s valuation metrics are still at or below historical averages, signaling further upside as the market starts to recognize potential gains from the new 55-70GW capacity cycle. UBS anticipates that increased clarity on PDP 2026 procurement rounds and data centre opportunities could drive a significant re-rating of GULF shares.
