Amidst the fluctuating landscape of Thailand’s utility sector, JPMorgan maintains a preference for Independent Power Producers (IPPs) over Small Power Producers (SPPs).
With sharp variations in share price performance shaping the year, JPMorgan has adjusted its ratings: Gulf Energy Development Public Co. Ltd. (SET: GULF) has been upgraded from Neutral to Overweight (OW) due to solid earnings potential and favorable industry tailwinds, while B.Grimm Power (SET: BGRIM) has been downgraded from Neutral to Underweight (UW) amidst earnings disappointments.
The past year saw GULF outshining the broader SET index with its robust, defensive earnings and strategic corporate actions, as depicted by a +34% share boost compared to the SET’s -1%. This trajectory is anticipated to continue, supported by a core EPS CAGR of about 20% through FY23-26E, driven by its extensive IPP portfolio and sectoral positives such as the PDP bidding and data center services.
Conversely, GPSC (maintained Neutral) and BGRIM faced setbacks, with declines in both share price (-21 and -28%, respectively,) and future earnings outlooks, primarily due to continued margin pressures.
