At the end of the morning session on Monday, the share price of B.Grimm Power Public Company Limited (SET: BGRIM) dropped by 4.84% or THB 0.60 to THB 11.80, with a trading value of THB 160.17 million.
Global Power Synergy Public Company Limited (SET: GPSC) declined by 2.46% or THB 0.75 to THB 29.75, with a trading value of THB 146.73 million.
Gulf Energy Development Public Company Limited (SET: GULF) contracted by 1.02% or THB 0.50 to THB 48.50, with a trading value of THB 362.75 million.
DBS Vickers Securities stated in its report that BGRIM posted a net profit of 787 million baht in 4Q24, representing a 70% increase YoY and a substantial 384% rise QoQ, as anticipated by the analyst and the market, benefiting from a foreign exchange gain of 1.27 billion baht.
However, when examining the core operating performance, the company reported a net loss of 307 million baht, compared to a profit of 1.04 billion baht in 4Q23 and a profit of 1.17 billion baht in 3Q24. This was due to:
- Seasonal low electricity demand,
- Higher SG&A expenses from newly launched projects, and
- Losses from joint ventures in subsidiaries impacted by foreign exchange effects.
Furthermore, the analyst also pointed out future risks for the company, including:
- Decreased electricity rates: The government is likely to reduce electricity rates from 4.15 baht/unit to 3.7 baht/unit, which could affect BGRIM as the rates will be lowered for low electricity users.
- Rising natural gas costs: Natural gas costs are expected to increase to 320-350 baht/mmbtu in 2025 due to domestic gas shortages and uncertainties in foreign policy regulations.
In 2025, the analyst expected BGRIM to see growth from investments in Data Centers and renewable energy businesses, yet faced ongoing risks from electricity rate cuts and increased natural gas costs.
Nevertheless, although BGRIM’s current stock price reflects certain risks, DBS Vickers Securities maintains a ‘Hold’ recommendation for the company with a 2025 target price of 14 baht per share.
