Thai power stocks strengthen: GULF and GPSC lead on new PDP watch
Morning rally overview: six power stocks climb together
Thailand 4 - ThaiFan report, Thailand's stock market saw the power sector strengthen in early trade, led by GULF and GPSC. Brokers said the rally was supported by both global and domestic positives, while investors are also positioning ahead of expectations for the next Power Development Plan (PDP).
As of the morning of February 7 (2569 BE), the power stocks were as follows: GULF rose 2.44% (+1.50 baht) to 63.00 baht; GPSC rose 2.27% (+1.00 baht) to 45.00 baht; BGRIM rose 1.18% (+0.20 baht) to 17.10 baht; GUNKUL rose 0.94% (+0.04 baht) to 4.30 baht; EGCO rose 0.84% (+1.00 baht) to 120.00 baht; TPIPP rose 0.57% (+0.01 baht) to 1.76 baht.
Two external tailwinds: lower oil prices and easing bond yields
Fundamental analysts said the power sector stood out in early trade mainly because of external support: oil prices eased after a run of consecutive sessions, helping relieve pressure on energy costs and creating a more favorable trading backdrop for utility-related stocks. Although the baht remains weak, funds are still flowing back into the sector.
In addition, bond yields also moved lower. Analysts believe falling bond yields usually benefit power-generation stocks because the business has long-term cash-flow characteristics. In a lower-rate environment, financing costs can fall and equities become more attractive relative to other assets, providing clearer buying support.
Domestic catalyst: the new PDP may bring bidding opportunities and long-term growth
Beyond external factors, domestic developments are also driving share-price performance. The market is focusing on progress in the new Power Development Plan (PDP), with the government expected to release more details soon.
Analysts said investors are beginning to position early because the new PDP will shape future energy-investment direction and open bidding opportunities for multiple types of power projects, including renewable energy and baseload plants. This creates room for growth for leading firms with the capital and project-development capability.
Large power generators may be the biggest beneficiaries under the new PDP, as they are better prepared in terms of financial strength, investment capacity, and experience in developing and managing large-scale projects. These advantages give larger companies a higher probability of winning new project bids, which could drive future capacity expansion and revenue growth, leading investors to assign a more positive weighting to large-cap stocks.
On the back of both internal and external positives, analysts remain upbeat on the power sector and highlight key stock picks: GULF with a target price of 70 baht, and GPSC with a target price of 55.30 baht.
Still, investors should closely track the details of the new PDP, including the share of new capacity, fuel mix, and bidding terms for new projects, as these factors will determine the key variables for each company's future growth and intrinsic value. Overall, power stocks may continue to attract market attention: they combine defensive, stable cash-flow qualities with growth opportunities through future project investment.
