InnovestX Securities (INVX) expressed a slight positive view on Gulf Development Public Company Limited (SET: GULF), following its 100% stake acquisition in West Absolute Co., Ltd. (WAC) through its wholly owned subsidiary Gulf Waste to Energy Holdings Co., Ltd. (GWTE) on October 30, 2026, for a total investment of approximately THB 400 million.
WAC operates a non-hazardous waste landfill business, which will source and segregate industrial waste for GULF’s Solid Recovered Fuel (SRF) plants and waste-to-energy (WTE) power plants, as well as handle ash disposal generated from electricity production.
INVX stated that while WAC is expected to contribute a modest THB 20 – 30 million per year to GULF’s net profit, the acquisition significantly enhances the integrated supply chain of GULF’s WTE business.
GULF’s WTE portfolio comprises 12 industrial waste-to-energy power plant projects with a combined capacity of 96 MW under 20-year Power Purchase Agreements (PPAs) with the Provincial Electricity Authority (PEA), slated to commence commercial operation (COD) in 2027, alongside three SRF processing plants.
The analyst firm estimates that the 96 MW WTE portfolio will generate approximately THB 800 – 1,000 million in annual net profit for GULF once fully operational starting in 2028 (assuming an 80 – 85% capacity factor and a 20 – 25% gross margin). This represents roughly 1.9–2.3% of GULF’s projected earnings in 2028.
INVX maintains an “Outperform” rating on GULF with a DCF-derived target price of THB 78, supported by continuous year-over-year earnings growth. GULF’s 3Q26 net profit is forecasted at THB 9 billion, up 24% YoY due to stronger operational performance from ADVANC and its power plants in the U.S., though down 18% QoQ following the seasonal drop in dividend income from KBANK.
