Is investing in Thai energy stocks truly reliable? Get to know the top 8 power plant stocks.

Why Investors Are Turning to Energy Stocks

Electricity is an essential commodity with steady demand regardless of economic conditions. This necessity has earned power utility stocks the nickname “Defensive Stocks” or safer stocks compared to others. Their business model, which generates continuous revenue from long-term power purchase agreements, results in relatively stable profits.

Beyond safety, energy stocks are also attractive due to market changes in the energy sector, including pressure from clean energy policies (Renewable Energy) and the expansion of electricity demand in Asia. Thai government policies such as the PDP (Power Development Plan) and AEDP (Alternative Energy Development Plan) also support further growth in this sector.

Understanding the Structure of Power Plant Businesses

Before choosing power utility stocks, investors should familiarize themselves with the different categories of private power plants.

Power plants can be divided into three sizes: IPP (Independent Power Producer) with capacity over 90 MW, SPP (Small Power Producer) with capacity between 10-90 MW, and VSPP (Very Small Power Producer) with capacity below 10 MW.

In terms of energy sources, we find: solar power plants (Solar), hydropower (Hydropower), natural gas power plants (Natural Gas), nuclear power plants, and other renewable energy sources such as wind and biomass.

A key feature of power stocks is the power purchase agreement (Power Purchase Agreement), which indicates the buyer, duration, and electricity rate. Long-term, well-structured contracts help investors forecast income more accurately.

8 Power Stocks with Notable Gains

Performance Comparison Table for the First 6 Months

BANPU - A Global Power Producer

Banpu Power is a well-known Thai company specializing in the production of commercially viable electricity. Their core philosophy is to provide “Quality Megawatts” to society. Their power plants and projects are spread across multiple countries including Thailand, Laos, China, Japan, Vietnam, Indonesia, Australia, and the United States, totaling 41 facilities.

Latest Data:

• Current stock price: 111.50 Baht
• Total revenue (6 months): 90,673.73 million Baht
• Net profit: 2,488.71 million Baht
• YTD: -5.88%
• Capacity based on investment proportion: 3,656 MW, with 11.20% renewable energy

Analysts estimate a target price of 5.00-8.00 Baht, with an average of 6.75 Baht.

GULF - A Leader in Comprehensive Energy Business

Gulf Energy is a Thai energy organization with diverse operations, including power generation, gas business, renewable energy, hydropower, and utilities. This year, the company is also involved in over 100 public utility projects.

Latest Data:

• Current stock price: 66.50 Baht
• Total revenue (6 months): 64,896.44 million Baht
• Net profit: 8,239.79 million Baht
• YTD: +54.49% ⬆️ (Outstanding Performance)

Gulf recently announced plans to invest in renewable energy and established a NewCo to facilitate acquisitions of (VTO) securities from ADVANCE and THCOM.

Analysts’ target price: 49.00-68.00 Baht, average 56.92 Baht.

GPSC - Innovation in Clean Energy

Global Power Synergy is a leader in energy and innovation on the international stage, focusing on electricity, steam, and industrial water sales under the 4S strategy.

Latest Data:

• Current stock price: 46.25 Baht
• Total revenue (6 months): 48,426.98 million Baht
• Net profit: 2,292.55 million Baht
• YTD: -3.09%

GPSC received a 7 billion Baht long-term loan from Thai financial institutions, both government and private, to advance clean energy projects and support the country’s Net Zero goals.

Target price: 43.50-61.00 Baht, average 53.46 Baht.

BGRIM - Diverse Energy Producer

B.Grimm Power studies energy businesses with two main functions: Combined Heat and Power (Combined Heat and Power) and renewable energy. The company has expanded into various sectors, including health, lifestyle, real estate, and digital technology.

Latest Data:

• Current stock price: 23.40 Baht
• Total revenue (6 months): 28,344.78 million Baht
• Net profit: 607.17 million Baht
• YTD: -12.66%

Recently, BGRIM signed a solar power purchase agreement with the government, strengthening its position as a leading energy producer in the country.

Target price: 19.60-31.06 Baht, average 26.66 Baht.

EA - An Innovative Energy Company

Energy Absolute is actively producing clean energy from renewable sources, including renewable energy, renewable power, lithium batteries, and electric vehicles. The company adds value to society, the economy, and the environment through electric vehicles, electric boats, and charging stations.

Latest Data:

• Current stock price: 7.80 Baht
• Total revenue (6 months): 10,368.81 million Baht
• Net profit: 1,430.44 million Baht
• YTD: -81.36% ⚠️ (Significant Price Drop)

This year, EA promotes high-quality electric pickup trucks for entrepreneurs, focusing on consumption.

Target price: 5.00-35.00 Baht, average 17.33 Baht.

( SSP - Experts in Renewable Energy

S Power Corporation is a prominent Thai renewable energy company with a history dating back over a decade. Starting with a registered capital of only 1 million Baht, it has grown into a major player with over 30 billion Baht in assets. S Power produces and sells electricity from renewable sources, supplying both government and private sectors.

Latest Data:

• Current stock price: 5.90 Baht
• Total revenue (6 months): 1,709.90 million Baht
• Net profit: 326.89 million Baht
• YTD: -25.62%

The new Volt platform is a peer-to-peer energy trading marketplace launched recently. The company plans to develop 9-10 additional renewable energy projects at its factories.

Target price: 8.90-12.00 Baht, average 10.00 Baht.

Investment Attributes of Energy Stocks

) Higher returns than bank savings

Power utility stocks carry risks similar to other stocks but generally offer returns that outperform bank deposits. Some stocks also pay dividends, providing additional income.

Long-term revenue stability

Electricity businesses have sustainable income streams because demand from consumers and businesses remains steady, offering high profit potential.

Growth potential

Power plants can expand capacity or develop new production lines to meet increased electricity demand. Governments may also offer special incentives to promote investment.

How to Buy Energy Stocks

( Method 1: Purchase through Thai stocks

For stocks listed on the Thai stock market, such as GULF and BGRIM, choose a preferred broker, e.g., Bualuang Securities, Kasikorn Securities, or Maybank Kim Eng Securities. Account opening conditions and fees vary.

Popular trading programs include STREAMINGPRO and ASPEN. International investors must buy a minimum of 100 shares. For example, buying 100 GULF shares @ 50 Baht/share = 5,000 Baht. If the price rises to 55 Baht, profit is 500 Baht.

) Method 2: CFD trading via foreign brokers

For CFD (Contract for Difference) trading, advantages include:

• Two-way trading ###Long/Short###
• Leverage or Margin to use less capital
• Wide range of products ###Stocks, Gold, Currencies, Indices###

Example: At MiTrade broker, you can start with ###open an account in 3 minutes, receive a bonus, ###dollars, with zero commission, low spreads, and a demo account with $50,000 virtual funds.

In Conclusion

Overall, Thai energy stocks live up to their reputation as “Defensive Stocks.” Electricity is essential for both production and consumption. Ensuring a stable energy supply is a top priority. Investing in this sector can be seen as diversification or, for risk-averse investors, as a way to mitigate overall portfolio risk.