FSS International Investment Advisory Securities (FSSIA) kept its Buy rating on Gulf Development Public Company Limited (SET: GULF) and raised its target price to THB89.50 from THB76.00. Against the THB59.00 close, the new target implies 51.7% upside and sits 15.2% above the consensus target.
The brokerage argues that Gulf can link Thailand’s power sector with the fast-growing AI infrastructure market, and that a new renewable bidding round could add further value.
In its 1 October 2026 report, FSSIA said Gulf’s financial position gives it room to fund its next stage of expansion. The broker pointed to a strong balance sheet, solid operating cash flow and low leverage, which the brokerage firm estimates could support additional borrowing of about THB200-300 billion. Gulf also aims to become a major digital infrastructure operator by applying its energy expertise to AI and cloud computing demand.
The largest upside driver is Thailand’s new Power Development Plan (PDP) 2026. FSSIA assumes the Electricity Generating Authority of Thailand (EGAT) will open bidding next year for about 10GW of new renewable capacity. If Gulf wins 40% of that, or about 4GW of solar, under power purchase agreements with a feed-in tariff of THB2.16 per kWh, FSSIA estimates capex of THB25-30 million per MW and a project IRR of about 12%. On those assumptions, the new capacity would add roughly THB10 per share, on top of the current target.
Finansia expects the “Super Intelligent” megatrend to push electricity demand above GDP growth, especially for clean power, because data centers use far more electricity than traditional industries. It sees Gulf as well placed to benefit through a business chain covering LNG imports, power generation, electricity supply to data centers and digital connectivity. Catalysts include the new PDP, a planned 2GW Direct PPA scheme for data centers, and possible renewable investments in Europe within the next year.
The higher target also reflects Gulf’s recent purchase of 50% stakes in solar and wind projects from GUNKUL, equal to 339.5MW of attributable capacity. FSSIA values the acquired assets at about THB9.7 billion on a discounted cash flow basis using a 5.5% WACC, or roughly THB0.5 per share. The brokerage also cited long-term PPAs that support lower-risk earnings, cash generation from the digital businesses, and net interest-bearing debt to equity of just 1.06x.
FSSIA forecasts revenue of THB151.9 billion in 2026, up from THB98.9 billion in 2025. It projects net profit of THB37.2 billion in 2026, THB39.0 billion in 2027 and THB42.8 billion in 2028. Recurring net profit is expected to rise to THB35.4 billion in 2026 from THB24.6 billion in 2025, with core EPS of THB2.37. At the current price, the stock trades at a core P/E of 24.9x for 2026, with a projected dividend yield of 2.1%.
