Krungsri Securities said that B.Grimm Power Public Company Limited (SET: BGRIM)’s 4Q24 performance could record a 67% increase in net profit or THB 769 million compared to the same period last year and a 372% gain compared to the previous quarter. This spectacular gain was due to a THB 300 million FX gain.
Meanwhile, the core profit in 4Q24 was approximated around THB 469 million, a 22% hike from the same period a year ago but a 42% slump from the previous quarter. The gain was due to stabilizing gas costs with a Ft spike and waning selling, general, and administrative (SG&A) costs compared to the same period a year prior. On the other hand, the loss was estimated to come from loss-sharing from investment and financial costs from FX.
While the profit share may have missed the forecast, the THB 300 million FX gain has readjusted the profit forecast for 2025 up 31%. However, the assumption of SPP gas cost in 2025-2026 has been revised up by 3%, thus shrinking the 2025 and 2026 profit forecasts by 5% and 7% respectively.
The target price has been reduced to THB 14.10 from THB 17.20, with a “Trading Buy” recommendation.
Yuanta Securities on the other hand expects BGRIM’s 4Q24 net profit at THB 601 million, a 29.50% boost compared to the same period the previous year, and a 269.50% expansion compared to the previous quarter, although the forecast for BGRIM’s 4Q24 was weakened 52% to THB 387 million, and stabilized from the same period a year ago.
However, the securities company estimated 1Q25 normalized profit at THB 400 million, slightly grown from the previous quarter, even if the cost of natural gas would likely escalate from subsiding SG&A as season changes, causing the normal profit to subside from a higher base a year prior.
The broker thus maintains a “Buy” recommendation for long-term investment.
Harald Link, Chief Executive Officer of BGRIM, previously said that customers from the data center sector will increase electricity sales by around 40-50 MW. In the next 2-3 years, the company expects to sell 300-400 MW of electricity.
The company plans to joint venture with partners from both within Thailand and abroad to sell around 200 MW and invest 40-100 MW into the data center. Meanwhile, the company is also currently negotiating with data center customers and newer customers to sell more electricity in the form of gas links.
