On Monday at 11:15 AM (Bangkok time), the share price of Gulf Energy Development Public Company Limited (SET: GULF) rose by 0.42% or THB 0.25 to THB 60.25, with a trading value of THB 209.24 million.
Tris Rating has assigned GULF’s corporate credit rating at ‘A+’ and its senior unsecured debentures rating at ‘A’, while revising the outlook from “stable” to “positive”. This reflects optimism regarding the company’s merger with Intouch Holdings Public Company Limited (SET: INTUCH).
The company has also been awarded with an ‘AAA’ rating from SET ESG Ratings 2024 under the ‘Resources’ category by the Stock Exchange of Thailand. This marks GULF’s sixth consecutive year of inclusion in the list of sustainable stocks, underscoring GULF’s commitment to sustainable business practices. This commitment is grounded in good corporate governance, comprehensive risk management, and adherence to environmental, social, and governance (ESG) principles in business operations, aiming to build trust with investors and stakeholders alike.
Bualuang Securities (BLS) noted that the development regarding GULF’s rating had a beneficial impact on the company, with expectations for additional adjustments in 2025. Upon the merger with INTUCH, it is projected that the debt-to-equity ratio will notably decrease, given that INTUCH carried a mere THB 350 million in debt by the end of 3Q24, alongside assets valued at over THB 38 billion. This has raised anticipation for the issuance of debentures in 2025 to incur significantly lower interest expenses.
In addition, the ‘AAA’ SET ESG Ratings could also attract foreign and institutional investors, with the current stock price of approximately THB 59 per share deemed suitable for accumulation. The analyst established a price target of THB 75 per share for GULF prior to the finalization of the merger with INTUCH in the second quarter of 2025.
KGI Securities (Thailand) issued a ‘BUY’ rating for GULF, setting a target price of THB 70 per share and selected GULF as its top-pick stock within the power plant industry for the first quarter of 2025, viewing the recent decline in share price as an opportunity for accumulation. The company’s earnings estimates are expected to continuously be adjusted upwards while the rising market confidence could also boost the stock to outperform the SET index.
