On Friday at 10:11 AM (Bangkok time), the share price of Global Power Synergy Public Company Limited (SET: GPSC) increased by 1.80% or THB 0.75 to THB 42.50, with a trading value of THB 91.43 million.
Finansia Syrus Securities gave a ‘BUY’ recommendation for GPSC, with a target price of THB 59.00. The analyst predicted a surge in short-term positive sentiment for the company due to lower bond yields and a stronger baht. GPSC’s earnings in 2Q24 were projected to rise, attributed to lower gas prices, enhanced production capacity in the SPP power plant (2nd unit) to 100MW, and the commencement of production at the wind power plant in Taiwan in May, alongside increased profit share from Avaada.
GPSC aimed to elevate its production capacity from 6,757 MW to 10,440 MW by 2026 through overseas investments, and potentially increase domestic capacity via electricity auctions in the latter half of 2024. The company also anticipated a possible increase in electricity prices (Sep-Dec 2024) by THB 0.20-0.40 following the Energy Regulatory Commission meeting.
In addition, Maybank Securities (Thailand) identified three supporting catalysts, setting a target price of THB 57.00 for GPSC. The analyst anticipated the Energy Regulatory Commission to raise electricity prices by THB 0.20-0.40 from the current THB 4.18, with each THB 0.10 increase providing a 3% upside for 2024 earnings. GPSC stood to benefit from the declining US bond yield, aligning with potential US interest rate decreases in September.
GPSC’s 2Q24 earnings were expected to show QoQ and YoY growth, as LNG gas share adjustments for the Single Pool Price measure were set to lower gas costs. The analyst projected GPSC’s 2024/25 earnings to rise by 61% and 53%, respectively, and expected GPSC to be the best performer among power plant stocks.
