Ratch Group Public Company Limited (SET: RATCH) unveiled plans to develop a large-scale data center campus in Ratchaburi, according to information from an analyst meeting attended by CGS International Securities (Thailand) (CGSI).
The initiative aims to capitalize on over 550 rai of available land within the Ratchaburi Power Plant (RG) area, positioning RATCH as a major capacity provider and essential infrastructure partner for hyperscale data center operations in the region.
Rather than selling the property outright, RATCH will lease land from its bank, providing ongoing, long-term recurring income while retaining strategic control of the site. This approach enhances the company’s ability to maintain asset ownership and consistently generate revenue.
Additionally, RATCH will supply electricity and clean water directly to data center clients. These utilities, critical for data center operations—especially for cooling systems—will create robust recurring revenue streams and strengthen RATCH’s role in the burgeoning digital infrastructure ecosystem.
The company is in the process of screening six to seven potential clients, indicating strong demand momentum. RATCH’s data center project is expected to benefit from the Ratchaburi Power Plant extension Power Purchase Agreements (PPAs), and a prospective Independent Power Producer (IPP) bid for the RG area. Such supportive frameworks are anticipated to provide ample long-term growth visibility for the company.
Meanwhile, CGSI noted that capital-intensive projects in renewables, data centers, and overseas IPPs may weigh on RATCH’s dividend payouts. Investors should be aware that the company is likely to prioritize ongoing investments in these sectors, potentially resulting in lower absolute dividends in the near term.
As a result, the brokerage gives RATCH an ‘Add’ rating, with a target price set at THB 45.00 per share.
As of 3:42 PM (Bangkok time), the share price of RATCH advanced by 1.34% or THB 0.50 to THB 37.75, with a trading value of THB 256.66 million.
