Electricity: One of the key factors in gold investment and 8 energy companies that both novice and experienced investors are eyeing

In an era where energy is becoming a global key issue, investing in electric power stocks is an attractive option for many investors. Whether seeking steady income or long-term growth opportunities.

Why are electric power stocks interesting?

Power plant stocks are often called “Defensive Stocks” (defensive stocks) because they have inherent stability due to the endless demand for electricity. Regardless of how times change, the need for electricity from both industrial and household sectors remains continuous.

The main factors driving the value of electric power stocks include:

Economic conditions and demand: When the economy expands, various industries require more electricity, leading to increased revenue for power companies.

Government policies: The country’s Power Development Plan (PDP) and Renewable Energy Development Plan (AEDP) guide investment directions in the energy industry.

Power purchase agreements: Power plants with long-term contracts generate predictable cash flows, attracting investors seeking stability.

How are power companies categorized?

Based on capacity, power companies are divided into:

• IPP (Large private power plants): Capacity of 90 MW and above
• SPP (Medium private power plants): Capacity of 10-90 MW
• VSPP (Small private power plants): Capacity below 10 MW

Additionally, electric power stocks are categorized by energy source: solar, hydro, natural gas, nuclear, and other renewable energies such as wind, biomass, etc.

8 electric power companies making gains this year

###Latest 6-month financial comparison table

GULF: A leader in comprehensive energy solutions

Gulf Energy Development is a leading energy company with diverse operations, including power generation, gas, renewable energy, water, infrastructure, and utilities.

Performance: In the latest 6 months, GULF reported revenue of 64,896.44 million Baht and net profit of 8,239.79 million Baht, significantly higher than others.

Price trend: The stock price is 66.50 Baht, up by +54.49% this year. Analysts project it could reach 68.00 Baht, with a low of 49 Baht and an average of 56.92 Baht.

Attraction point: GULF recently announced a 5-year plan worth 90,000 million Baht for renewable energy investments, aligning with the country’s new energy policies.

BANPU: An international energy producer

Banpu Power is a global standard power generation company with over 41 power plant projects across 8 countries in the Asia-Pacific region.

Performance: Total revenue of 90,673.73 million Baht and net profit of 2,488.71 million Baht at a price of 111.50 Baht.

Capacity: Currently, its capacity based on investment is 3,656 MW, with renewable energy accounting for 11.20%.

Market outlook: Despite a YTD decrease of -5.88%, analysts expect the price to fluctuate between 5.00-8.00 Baht, with an average of 6.75 Baht.

GPSC: Innovation and sustainability at the forefront

Global Power Synergy is renowned for innovation and sustainable possibilities. Its core business involves producing and selling electricity, steam, and water for industrial use.

Performance: Revenue of 48,426.98 million Baht and net profit of 2,292.55 million Baht at a price of 46.25 Baht.

Financial support: Recently, GPSC received a long-term loan of 7,000 million Baht from government and private banks to support clean energy projects.

Future outlook: YTD down by -3.09%, but analysts expect it to fluctuate between 43.50-61.00 Baht, with an average of 53.46 Baht.

BGRIM: Power consolidator

B.Grimm Power focuses on electricity generation from combined heat and renewable energy. It is expanding into healthcare, lifestyle, real estate, and digital technology.

Performance: Revenue of 28,344.78 million Baht and net profit of 607.17 million Baht at a price of 23.40 Baht.

New contracts: BGRIM recently signed a solar power purchase agreement with the government, which will drive growth.

Market: YTD down by -12.66%, but analysts see potential for the price to range between 19.60-31.06 Baht, averaging 26.66 Baht.

EA: Pure energy for the future

EA (Energy Absolute) pioneers clean energy and green technology, including electric vehicles, electric boats, charging stations, and Li-ion batteries.

Performance: Revenue of 10,368.81 million Baht and net profit of 1,430.44 million Baht at a price of 7.80 Baht.

Innovation: EA supports Thai-made electric pickup trucks that are environmentally friendly.

Market outlook: YTD has fallen sharply by -81.36%, but analysts expect it to fluctuate between 5.00-35.00 Baht, with an average of 17.33 Baht.

SSP: Rapid expansion

Srisang Power Corporation is a fast-growing company aiming to be a leader in renewable energy, investing in Solar Farms, Solar Rooftops, and other renewable projects.

Performance: Revenue of 1,709.90 million Baht and net profit of 326.89 million Baht at a price of 5.90 Baht.

Expansion plans: In 2024, SSP plans to expand assets beyond 30,000 million Baht across Asia.

Potential: YTD down by -25.62%, but analysts expect it could rise to 8.90 Baht, an increase of approximately 50.85%.

CKP: From construction to energy

CK Power (Ch. Karnchang) was originally known for large-scale construction but has expanded into energy, investing in hydro, cogeneration, and solar power plants.

Performance: Revenue of 5,111.09 million Baht and a loss of -387.05 million Baht at a price of 3.70 Baht.

Trend: YTD up by +19.02%. Analysts expect it to range between 4.35-5.20 Baht, with an average of 4.7 Baht.

GUNKUL: Thailand’s new energy platform

Gunkul Engineering started with a capital of 1 million Baht and has grown into a 30,000-million Baht business, specializing in renewable energy and Peer-to-Peer energy trading platforms.

Performance: Revenue of 5,002.69 million Baht and net profit of 761.43 million Baht at a price of 2.80 Baht.

Innovation: GUNKUL will soon launch the Volt platform and Marketplace, offering 9-10 energy products.

Market: YTD up by +2.86%. Analysts expect it to fluctuate between 2.70-5.00 Baht, with an average of 3.76 Baht.

Why invest in electric power stocks?

1. Stable returns: Although energy stocks carry risks, they generally offer higher returns than bank deposits.

2. Continuous profits: Power plant businesses generate steady profits due to increasing electricity demand from both industry and consumers.

3. Growth opportunities: Power companies have long-term purchase agreements, ensuring income stability and supporting new project expansion.

4. Government policies: The Thai government emphasizes renewable and clean energy, creating opportunities for companies in this sector.

How to buy and sell electric power stocks

1. Through the Thai stock market

To buy Thai stocks like GULF, BGRIM, GPSC, you need to open an account with a Thai broker, such as Bualuang Securities, Kasikorn Securities, or Maybank Kim Eng Securities.

Minimum purchase: 100 shares. For example, buying 100 GULF shares at 50 Baht requires at least 5,000 Baht. If the price rises to 55 Baht, profit is 500 Baht.

Trading programs: Traders often use STREAMINGPRO and ASPEN.

2. Through foreign brokers (CFD)

Another method is trading CFDs (Contract for Difference) via international brokers.

Advantages:

• Can profit from both gains and losses
• Leverage allows trading with less capital
• Can trade various assets (stocks, gold, silver, indices)

Minimum investment: Some platforms start with just $50 .

Summary

Electric power stocks are considered “Defensive Stocks” because they are stable and have inelastic demand. The world needs energy, power companies must produce electricity, and investors seek safe investment options. Therefore, investing in this sector helps diversify risk in a portfolio, suitable for low-risk investors and those seeking long-term growth in the advancing energy sector.