In 2024, invest in 8 hot power generation stocks to watch out for

Why Power Utility Stocks Have Become the “Stable Horse” of Investment

In a volatile economic environment, power utility stocks remain an attractive choice for investors seeking steady income and long-term investment. This is because electricity is a commodity that people will definitely need, regardless of whether the economy is booming or slowing down. Therefore, the profits of power companies are relatively stable and can effectively avoid sudden changes.

Additionally, Thailand’s electric power industry is entering a significant transition phase. The government has developed the Power Development Plan (PDP) and the Alternative Energy Development Plan (AEDP), which open opportunities for private companies to invest in various power plant projects, from renewable energy, natural gas, to clean energy sources.

Latest 6-Month Operating Data: Who Are the Key Players

8 Notable Stocks Investors Are Watching

1. GULF - “The Most Outstanding Stock This Year”

The most interesting point is that GULF has risen by +54.49% since the beginning of the year, making it a true star in the power plant sector. Gulf Energy Development operates as a fully integrated energy company, from power generation, gas supply, renewable investments, to utility businesses.

In the latest 6 months, GULF recorded revenue of 64,896.44 million Baht and net profit of 8,239.79 million Baht. Recently, the company announced a 5-year investment plan worth 90,000 million Baht in renewable energy and acquisitions to expand its portfolio. The analyst target price is 56.92 Baht.

2. BANPU - “Regional Giant”

BANPU is a leader in power generation in the Asia-Pacific region, with 41 power plants/projects spread across Thailand, Laos, China, Japan, Vietnam, Indonesia, Australia, and the United States.

Currently, Banpu Power has an installed capacity equivalent to 3,656 MW, with 11.20% from renewable energy. In the first half of the year, the company reported revenue of 90,673.73 million Baht and net profit of 2,488.71 million Baht. Although YTD is at -5.88%, its financial stability and operations remain strong. The average target price is 6.75 Baht.

3. GPSC - “Innovation Leader”

Global Power Synergy is a key player driving the transition to clean energy, operating under the 4S strategic plan, focusing on environmentally friendly power generation.

In the latest 6 months, GPSC generated revenue of 48,426.98 million Baht and net profit of 2,292.55 million Baht. Recently, the company secured a long-term loan of 7,000 million Baht from reputable financial institutions, enabling full-scale renewable projects and achieving Net Zero targets. The target price is 53.46 Baht.

4. BGRIM - “Combined Heat and Power Technology”

B.Grimm Power pioneered cogeneration power plants (Combined Heat and Power), and is expanding into renewable energy. The company has diversified into healthcare, lifestyle, real estate, and digital technology.

In the latest 6 months, the company reported revenue of 28,344.78 million Baht and net profit of 607.17 million Baht. It recently signed a solar power purchase agreement with the government, boosting long-term growth confidence. The target price is 26.66 Baht.

5. EA - “Clean Energy Startup”

B. Energy (EA) is a future-oriented company focusing on renewable energy and electric vehicles. It has launched innovations such as commercial electric vehicles, electric boats, charging stations, and Li-ion batteries.

In the first half of the year, EA’s revenue was 10,368.81 million Baht, with a net profit of 1,430.44 million Baht. The company is developing Thai-made electric pickup trucks tailored for entrepreneurs. Despite an YTD decline of -81.36%, the target price of 17.33 Baht reflects long-term potential.

6. SSP - “Fast-Growing Little Star”

Sriracha Power Corporation specializes in renewable energy, focusing on renewable energy investments and creating a sustainable environment. It has invested continuously in Solar Farms, Solar Rooftops, and other renewable projects.

In the latest 6 months, revenue was 1,709.90 million Baht, net profit 326.89 million Baht. Although YTD is at -25.62%, most analysts rate it BBB+ due to potential asset expansion exceeding 30,000 million Baht in 2024. The target price is 8.90 Baht, potentially increasing by 50.85%.

( 7. CKP - “Contractor Entering the Energy Sector”

CK Power, formerly known for large-scale construction, has now ventured into energy through investments in hydropower, cogeneration systems, and solar power plants.

In the latest 6 months, CKP reported revenue of 5,111.09 million Baht but recorded a loss of -387.05 million Baht. However, YTD surged by +19.02%, indicating market confidence. The target price is 4.70 Baht.

) 8. GUNKUL - “Innovative Energy Trading”

Gunkul Engineering is an example of growth through diversification. Starting with registered capital of only 1 million Baht, it has grown into a business empire worth over 30,000 million Baht. The company specializes in generating and selling renewable energy, with a new focus on Peer-to-Peer Energy Trading Platform.

In the first 6 months, GUNKUL reported revenue of 5,002.69 million Baht and net profit of 761.43 million Baht. YTD stands at +2.86%. The new Volt service will focus on B2C and develop 9-10 energy products. The target price is 3.76 Baht.

The Real Reasons to Add Power Utility Stocks to Your Portfolio

Predictable Revenue Power companies often have long-term power purchase agreements with government and private sectors, allowing accurate cash flow and revenue forecasts. Additionally, increasing electricity demand provides continuous profit growth opportunities.

Policy Sustainability Many governments have set goals for Carbon Neutrality and Net Zero. This accelerates the growth of the clean energy sector, giving investors confidence in long-term prospects.

Expansion Opportunities Power companies can increase capacity to meet energy demand or venture into emerging technologies like Battery Storage and Green Hydrogen.

Better Returns Than Bank Deposits Compared to bank savings, power stocks offer significantly higher returns, especially in a fluctuating interest rate environment.

How to Access Power Utility Stocks: 2 Ways

Method 1: Buy Through Thai Stock Brokers Open a trading account with reputable brokers such as Bualuang Securities, Kasikorn Securities, or Maybank Securities. Minimum purchase is 100 shares. For example, buying 100 GULF shares at 50 Baht requires an investment of 5,000 Baht. If the price rises to 55 Baht, profit is 500 Baht. Popular trading programs include STREAMINGPRO and ASPEN.

Method 2: Invest via CFD Trade stocks through Contract for Difference (CFD) with foreign brokers. Advantages include the ability to buy and sell, leverage to reduce capital requirements, and access to various assets. Minimum ### and quick account setup within 3 minutes.

Important Knowledge Before Investing

• Study each company’s Power Purchase Agreement (PPA), including contract duration, revenue recognition, and cash flow stability.
• Analyze government policies and power development plans, as these influence investment opportunities.
• Monitor national electricity demand statistics, as this is a key business driver.
• Assess risks related to power plant safety, future government policies, and technological changes.

Summary: Why Power Utility Stocks Are a Smart Choice

Power stocks are truly the “Stable Horse” in the stock market—not because they are risk-free, but because their risks are proportional and predictable, stemming from society’s essential need for electricity.

Furthermore, the global transition to clean energy opens opportunities for environmentally friendly power companies. Whether it’s GULF with expansion plans, SSP with asset growth, or GUNKUL with innovative offerings, all indicate that the industry is preparing for significant growth.

Investing in power utility stocks means betting on “Welcoming the Future” while enjoying steady returns today. This makes them an ideal choice for investors of all generations.