The share price of Gulf Energy Development Public Company Limited (SET: GULF) surged to Bt48.50 per share intraday but finished lower at a record high of Bt47.50 per share, increasing Bt1.75 or 3.83% with a trading value of 3,259 million baht after closing the last day of 2021 with a 3.98% gain and a 33.58% increase for the year.
GULF is Thailand’s largest power producer that stepped up into a holding company while investing in a portfolio of conventional and renewable power generation and distribution businesses, as well as natural gas supply and distribution, infrastructure development projects, and other related businesses.
The company has 5,800 MW of capacity in power generation currently running and an additional of 7,766 MW is under construction.
The stock is one of the most anticipating securities in the market as investors are looking forward to how the company will perform this year with high expectations, especially after the acquisition of Intouch Holdings Public Company Limited (SET: INTUCH), a Thai holding company which focuses on the telecommunication industry.
Looking into 2022, the company sees more capacity increase and opportunity up ahead. GULF expects to commence the operation of its 2nd and 3rd unit of GSRC Power Project in March and October 2022, respectively, which will add 662.50 MW per unit to GULF’s portfolio.
Meanwhile, GULF will fully recognize a semiannual dividend payment from INTUCH from its acquisition at 42% of shareholding. In the third quarter of 2021, GULF booked THB 1,702 million of other income during the quarter, which mainly was an income from an interim dividend payment from INTUCH of THB 1,666 million.
Moreover, the acquisition of INTUCH opened the door for GULF to cooperate with Singtel, INTUCH’s second major shareholder. The company in October 2021 established a partnership with Singtel to develop data center business, while expecting to expand the business in Asia and other regions in the future.
GULF will commence the operation of its GDP Power Plant with a total capacity of 2,650 MW in 2023-24. The company is also looking forward to open the Laem Chabang Port Phase 3, Terminal F in 2025, which is a mega project worth THB 30,871 million, joined with PTT Tank, a subsidiary of PTT Public Company Limited (SET: PTT) and China Harbour Engineering Company Limited.
According to Refinitiv, 5 brokers gave “Buy” recommendations on GULF with 2 Hold and 1 Sell. The mean of GULF’s target price is Bt44.13 per share with FSSIA giving the highest price at Bt56.00 per share.
