Yuanta Securities stated that it has a neutral tone after a conference call with the management of Gulf Energy Development Public Company Limited (SET: GULF) concerning the recent drop in its stock price. On Monday, GULF traded flat in the morning session after a 3.11% decline on Friday, attributed to a market selloff in the utility sector triggered by a rise in LNG prices and concerns over increased costs.
During the call, management highlighted that the current draft of the Power Development Plan (PDP) 2024, which is undergoing a public hearing, could undergo adjustments to account for the growing demand for electricity from Data Center and AI industries. The implementation of the PDP 2024 plan is expected to potentially boost renewable energy production to align with the country’s carbon reduction strategy.
Gulf Energy Development also expressed skepticism about incorporating hydrogen into natural gas for electricity generation in the PDP draft due to limited support from existing power plants in the country. The company views the likelihood of nuclear power generation as slim, suggesting that any removal of nuclear power plants from the plan would result in increased electricity generation from natural gas.
Furthermore, the company confirmed that there are no current plans to restructure shareholding in INTUCH. Yuanta Securities maintained a “Buy” recommendation for medium-to-long-term investors, setting a fair price target of THB 52.75 per share.
