At the end of the morning session on Wednesday, the share price of Global Power Synergy Public Company Limited (SET: GPSC) jumped by 3.90% or THB 1.50 to THB 40.00, with a trading value of THB 307.78 million.
KGI Securities (Thailand) projects GPSC’s earnings in 2Q24 to reach THB 1.4 billion, reflecting a robust 62% increase QoQ and 353% YoY. The analyst anticipates continued earnings growth for the company in 3Q24, driven by the expected strong performance of the Xayaburi Hydro Power Plant Project during the high season, along with an attractive valuation at PBV 1x.
Furthermore, KGI foresees GPSC’s earnings to maintain a steady growth trajectory in 2024-25, supported by the decline in bond yields. With confidence in GPSC’s prospects, the analyst recommends a ‘BUY’ rating, setting a base price of THB 58.50 per share.
Yuanta Securities (Thailand) anticipates GPSC’s earnings in 2Q24 to reach THB 1.4 billion, marking a significant 58% QoQ rise and 343% YoY. This growth is attributed to the resurgence of the small power producer (SPP) business, which expanded in tandem with the escalating demand for electricity and steam from the petrochemical sector.
The company’s margin is also expected to increase, as a result of reduced gas expenses following the Erawan field’s full-capacity gas production. This development led to an increased gas proportion in the Gulf of Thailand and the initiation of gas cost computations under the Single Pool gas price structure adjustment policy.
The performance trend in 3Q24 is expected to continue its growth trajectory, bolstered by profit sharing from international renewable power plants. While maintaining a ‘BUY’ recommendation with a fair price target of THB 57.00, the analyst underscores the strong profit trend spanning from the 2Q24 to 3Q24, which is anticipated to underpin the share price.
However, the analyst recommends investors wait for investment opportunities after the announcement of the MSCI index weight adjustment.
