Stock Update: GPSC Shares on the Rise
GPSC shares experienced a 4.35% surge, reaching 48 baht with a trading value of 400 million baht at 10:57 am. The market opened at 46.50 baht, hitting a high of 48.00 baht and a low of 46.50 baht. This increase comes after a dip from 48.50 baht on 21 November 2023, and after a period of fluctuation above 50 baht three months ago.
Finansia Syrus Securities has identified Global Power Synergy Public Company Limited (GPSC) as a top stock, recommending a “Buy” with a target price of 59 baht. While 4Q23 profit may show a downward trend due to a reduction in Ft value to 3.99 baht/unit, the outlook for electricity prices in 2024 is optimistic, pending the Energy Regulatory Commission’s determination of electricity prices for the 1st installment (July-April 24).
Additionally, the company aims to increase the share of electricity sold based on gas prices to IU customers from 15% to 25% in 2024, which will decrease the risk and uncertainty of Ft values. The growth of renewable energy abroad is also expected to support the company’s growth in India, Taiwan, and beyond, with anticipated profits of +39% yy and +28% yy in 2023 and 2024, respectively.
Support level: 44.50//43.25 baht, resistance level: 48-48.50//51 baht.
ASL Securities also recommends GPSC stock, citing expectations of expansion in 2024 as industrial customers are anticipated to return. The stock is seen as a target for TESG fund investment due to its high ESG score, expectations of MPC maintaining interest rates, and potential scenarios of increasing electricity prices in 2024.
Despite a projected shrink in 4Q23 due to lower FT values and the low season for the XPCL power plant, the company anticipates improvements YoY, with a net profit estimate of 975 million baht for the quarter and 4.18 billion baht for the full year. The company’s executives forecast an expansion in 2024 as industrial customers are expected to return, leading to a 10% increase in electricity purchased from 2023.
In addition to revenue realization from AEPL in India and planned growth in the solar power platform business, the company is also making progress on the SPP2 Replacement and ERU projects. By 2025, the company targets a total production capacity of 8,941 MW, compared to 6,415 MW in 3Q2023.
By InfoQuest News Agency (29 Nov ’23)
Tags: GPSC, TESG, Thai stocks, Global Power Synergy
Stock news 29 Nov. ’23 11:13 am 2023-11-29
GPSC shares jumped 4.35% to 48 baht, an increase of 2.00 baht, trading value 400 million baht at 10.57 am, the market opened at 46.50 baht, the highest price rose to 48.00 baht and the lowest price was 46.50 baht GPSC share price continued to bounce back after the price dropped from reaching 48.50 baht on 21 November 2023 and from swinging in the range of more than 50 baht 3 months ago.
Finansia Syrus Securities has named Global Power Synergy Public Company Limited (GPSC) as a top stock today, recommending “Buy” with a target price of 59 baht. In the short term, the 4Q23 profit trend is expected to be weak down qq following the reduction of the Ft value to 3.99 baht / unit, but it is believed that the direction of electricity prices in 2024 will be better by waiting to follow the Energy Regulatory Commission (ERC) to determine the price of electricity in the 1st installment (m .July-April 24) Coming soon
Meanwhile, the company aims to increase the share of electricity sold based on gas prices to IU customers from 15% to 25% in 2024, which will reduce the risk and uncertainty of the values of Ft. Regarding the growth of renewable energy abroad It is also another factor that supports the growth of India, Taiwan, etc. We expect 2023-2024 profits to grow +39% yy and +28% yy, respectively.
Support level 44.50//43.25 baht, resistance level 48-48.50//51 baht.
Like ASL Securities, today’s stock pick is GPSC stock, which is expected to expand in 2024 as industrial customers are expected to return. Strategically, there are positive factors from 1. This is the TESG fund’s target stock to invest in because it has an ESG score level of AAA 2. It is expected that the Monetary Policy Committee (MPC) will keep interest rates at 2.5% and it will signal the end Raising interest rates helps to reduce financial costs and 3 trends in increasing the FT value for the period January-April 2024. Currently, the Energy Regulatory Commission is collecting opinions from hearings during 10-24 November from 10-24 November. 3 Scenarios Increase electricity price to 4.68-5.95 baht from 3.99 baht per unit currently.
Although the trend for 4Q23 will shrink QoQ from lower FT values and the XPCL power plant which is in the low season, it will improve YoY from the start of COD of the battery production plant in this period. and increased IU power sales as a result of not shutting down customer factories for repairs Bloomberg estimates a net profit of 975 million baht, compared to 1.76 billion baht for the 3rd quarter of 2023. For the full year 2023, it is estimated that net profit at 4.18 billion baht. from last year it was 891.5 million baht with an average target price of 56.67 baht.
Executives assess that performance in 2024 will expand because they expect industrial customers to return. After this year there may be economic and supply chain problems which will cause the amount of electricity purchased to increase by 10% from 2023. There is a plan to offer guidance on electricity prices to IU customers as a link to gas prices instead of relying on , which will increase the amount of electricity sold because the gas price trend will decrease.
Including revenue realization from AEPL in COD in India around 500-600 MW and the solar power platform business will grow as planned. Regarding the progress of the SPP2 Replacement project, it is expected that power will be able to be supplied during this month. March-April 2024. Regarding the ERU project, it is expected to be able to supply electricity in 2025. In 2025, the target is to have a total production capacity of 8,941 MW (compared to 6,415 MW in 3Q2023).
By InfoQuest News Agency (29 Nov ’23)
Tags: GPSC , TESG , Thai stocks , Global Power Synergy
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