Maybank Securities (Thailand) has revised its investment recommendation for WHA Utilities and Power Public Company Limited (SET: WHAUP) from ‘Hold’ to ‘Buy’, maintaining its target price at THB 7.50 per share, based on a DCF methodology using a WACC of 6.22%. The current share price is seen as not yet reflecting the growth potential from Thailand’s new power development plan (PDP2026) and the Direct PPA scheme.
The brokerage believes WHAUP is well positioned to benefit from a new growth cycle in Thailand’s renewable energy sector. This is supported by the company’s previous success in renewable project bids and its existing customer base in WHA Group’s industrial estates—an important advantage for long-term expansion in clean energy.
Regarding potential opportunities from PDP2026, Maybank assessed WHAUP’s historical bid win rates alongside proposed solar and wind capacity in the new PDP draft. The analysis indicates WHAUP could secure up to 460 MW in new projects, which, if realized, could raise its fair value by approximately 19% from the current target price.
The Direct PPA business also offers additional growth potential, driven by increasing demand for clean energy from existing industrial customers within WHA’s estates. According to Maybank, every 100 MW of additional capacity under Direct PPA could add roughly 4% to WHAUP’s target price.
However, these prospective growth factors have not yet been fully incorporated into its earnings estimates, presenting further upside to the stock’s long-term value should the company succeed in winning new projects and expanding capacity.
For 3Q26, Maybank expects WHAUP’s core profit to come in at THB 383 million, representing a year-on-year decline of 23% and a quarter-on-quarter drop of 24%. The main reasons are a decrease in capacity charge revenue and lower profit contributions from SPP operations, resulting in weaker overall profit compared to the previous periods.
On a brighter note, the utility’s water business continues to show growth potential. Maybank forecasts domestic water sales volume in 3Q26 to grow 8% year-on-year, supported by demand from power, petrochemical, and automotive industry clients, which helps underpin utility revenue amid a slowdown in the power segment.
Looking ahead to 4Q26, the analyst anticipates core profit recovery year-on-year, driven by a reversal in capacity charge revenue. However, profit may remain flat quarter-on-quarter due to rising natural gas costs, which continue to challenge power plant margins.
For 2027, Maybank projects a 22% growth in WHAUP’s core profit compared to 2026, reflecting operational recovery and long-term expansion in renewables. The company’s forecast dividend yield of 3.9–4% also provides additional appeal for investors.
According to the brokerage, WHAUP is trading at an attractive 2027 P/E ratio of just 14.4x, below its 10-year historical forward P/E average of 16.2x, the sector average of 23.7x (domestically), and the regional average of 17.7x, indicating a discount to peers.
As of 11:45 AM (Bangkok time) on Tuesday, the share price of WHAUP rose by 1.49% or 0.10 to THB 6.80, with a trading value of THB 23.14 million.
