There is an interesting topic regarding investing in power plant stocks, especially now that the market is volatile. These stocks are attracting a lot of investor attention because they are known as "safe assets" or Defensive Stocks.



Why is that? Because electricity is a necessity regardless of whether the economy is good or bad. Power plant businesses therefore have relatively stable income, steady cash flow, and often pay regular dividends, making them suitable for those seeking regular income from their portfolio.

Currently, there are 8 leading power plant stocks in Thailand that should be watched. The first is GULF, which has the highest market value at 795.55 billion baht, with a closing price of 54 baht, and a P/E ratio ranging from 8.4 to 32.1 times. The price is considered quite reasonable.

Followed by EGCO, priced at 120.50 baht, with a market value of 63.44 billion baht. This company is a major private power producer with international investments across Asia-Pacific and North America. And RATCH, with a market value of 67.97 billion baht, priced at 31.25 baht, is supported by the Electricity Generating Authority of Thailand (EGAT), holding about 45% of shares.

For those seeking rapid growth, BCPG and EA might be interesting options, as they focus on clean and renewable energy. BCPG is priced at 8.05 baht, up 3.9% today, while EA is at 3.02 baht, up 5.6%. Although their P/E ratios are high, this reflects expectations for growth.

There are two ways to invest in power plant stocks. The first is to buy directly through a Thai stock broker, such as Bualuang Securities or Kasikorn Securities, with a minimum of 100 shares. For example, buying 100 shares of GULF at 54 baht would require 5,400 baht.

The second method is to buy through foreign brokers via CFDs, which offer advantages like leverage, lower investment amounts, and the ability to trade both rising and falling prices. It also allows trading in various products.

It’s important to remember that power plant stocks are suitable for long-term investment because the business fundamentals are strong, performance is consistent, and government support through clear PDP and AEDP plans is in place. Additionally, the global green energy trend continues to grow. Even if some countries adjust policies, the clean energy sector still receives ongoing support.

If you want to diversify your portfolio, power plant stocks are a good option. However, always keep in mind that investing involves risks and is not suitable for everyone. Be sure to study the information and assess the risks according to your financial situation before making decisions.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned