Electric Power: Why Should Investors Take These Stocks Seriously?

The power generation stocks group, or Defensive Stocks, is a suitable option to consider seriously for those who want to build a stable investment portfolio because electricity is a fundamental societal demand. Whether the economy is booming or slowing down, the demand for electricity remains continuous, making power plant businesses a stable source of income.

Power Plants: Stable Income-Generating Machines

Electricity production depends on many factors. Power plants across Thailand and ASEAN are growing in line with industrial and household demand. Capacity is also categorized by size, from IPP (large private power plants with capacities of 90 MW or more) to VSPP (very small power plants under 10 MW).

Government energy policies through the PDP and AEDP plans play a crucial role in directing investments in this business. Long-term power purchase agreements are also important because they provide investors with confidence about future income.

Diverse Energy Sources Shaping the Portfolio

Looking at the types of energy used for electricity generation, there is a wide variety, from solar power (Solar Power), which is rapidly increasing, to hydro, natural gas, and even nuclear energy. Renewable energy (Renewable Energy) has garnered high interest from both the government and private investors because it aligns with the country’s Net Zero goals.

Overview of 8 Power Stocks with the Most Changes

###Performance comparison over the last 6 months

BANPU: Global Energy Producer

Banpu Power operates under the philosophy “Powering Society with Quality Megawatts,” with a power generation network covering 8 countries in Asia-Pacific, including Thailand, Laos, China, Japan, Vietnam, Indonesia, Australia, and the United States, with 41 power plants and projects.

Operational Data:

• Price: 111.50 Baht
• 6-month revenue: 90,673.73 million Baht
• Net profit: 2,488.71 million Baht
• YTD: -5.88%
• Capacity: 3,656 MW (normal share) renewable energy 11.20%

GULF: Thailand’s Full-Cycle Energy Leader

This company covers businesses from power generation, gas, renewable energy, to hydro power and infrastructure utilities, focusing on sustainable development. Recently announced investments in renewable energy according to the new PDP plan and plans to establish a new company.

Operational Data:

• Price: 66.50 Baht
• 6-month revenue: 64,896.44 million Baht
• Net profit: 8,239.79 million Baht
• YTD: +54.49% (highest performance)
• 5-year investment plan: 90,000 million Baht

GPSC: Pioneer of Clean Energy

Global Power Synergy operates mainly by producing and selling electricity, steam, and industrial water using cost-effective and stable technology. Recently secured a long-term loan of 7,000 million Baht from Yok Bank to advance clean energy projects.

Operational Data:

• Price: 46.25 Baht
• 6-month revenue: 48,426.98 million Baht
• Net profit: 2,292.55 million Baht
• YTD: -3.09%

BGRIM: Full-Service Energy Provider

B.Grimm Power started with combined heat and power and renewable energy businesses. Now expanding into health, lifestyle, real estate, and technology. Recently signed a power purchase agreement for solar energy with the government.

Operational Data:

• Price: 23.40 Baht
• 6-month revenue: 28,344.78 million Baht
• Net profit: 607.17 million Baht
• YTD: -12.66%

EA: Modern Clean Energy Pioneer

Energy Absolute positions itself as an innovator in energy, focusing on developing commercial electric trains, electric boats, charging stations, and Li-ion batteries with the latest technology. Operates under the philosophy “Energy for The Future.”

Operational Data:

• Price: 7.80 Baht
• 6-month revenue: 10,368.81 million Baht
• Net profit: 1,430.44 million Baht
• YTD: -81.36% (decreased due to volatility)

SSP: Reinforcing in the Renewable Era

S.S.P. Power Corporation grew from an investment in solar farms, rooftop solar, and other renewable energies. Its expansion plan in 2024 focuses on increasing assets over 30,000 million Baht across Asia.

Operational Data:

• Price: 5.90 Baht
• 6-month revenue: 1,709.90 million Baht
• Net profit: 326.89 million Baht
• YTD: -25.62%
• Credit rating: BBB+ (reflecting stability)

CKP: Ch. Karnchang Enters Energy

CK Power (a subsidiary of Ch. Karnchang) invests in hydro, cogeneration, and solar power plants, with investments in 6 different power plants.

Operational Data:

• Price: 3.70 Baht
• 6-month revenue: 5,111.09 million Baht
• Net profit: -387.05 million Baht (loss)
• YTD: +19.02%

GUNKUL: From Small Capital to Power Empire

Gunkul Engineering started with registered capital of only 1 million Baht and grew into a company worth over 30,000 million Baht, producing and selling renewable energy to both government and private sectors. Recently launched a Peer-to-Peer Energy Trading Platform via Gunkul Spectrum.

Operational Data:

• Price: 2.80 Baht
• 6-month revenue: 5,002.69 million Baht
• Net profit: 761.43 million Baht
• YTD: +2.86%
• Developing 9-10 new energy products next quarter

Fundamental Reasons to Invest in Power Stocks

Current Industry Trend: Society’s electricity demand is increasing with economic growth, making power plant businesses almost constantly operational.

Income Stability: Electricity production with long-term purchase agreements often yields predictable returns, unlike other businesses with higher uncertainty.

Development Policies: Thailand’s government focus on renewable and clean energy opens opportunities for power companies to expand.

Long-term Growth: Besides the current market, companies can expand to neighboring countries and increase capacity.

How to Invest in Power Stocks

For the Thai stock market

Open an account with a licensed Thai broker, such as Bualuang Securities, Kasikorn Securities, or Maybank Kim Eng Securities.

Popular trading programs include STREAMINGPRO and ASPEN, which provide real-time market data.

Important info: Minimum trading of 100 shares. Example: Buy GULF 100 shares @ 50 Baht = 5,000 Baht. If the price rises to 55 Baht = profit of 500 Baht.

Trading via foreign brokers (CFD)

Advantages of CFD trading:

• Can trade both directions (up and down)
• Use leverage to reduce capital needed
• Wide range of products
• Real-time price data

Low initial investment, convenient for beginners.

Summary: Why Power Stocks Are Suitable for Your Main Portfolio

The power generation stocks group, or Defensive Stocks, is ideal for investors seeking a balance between safety and growth. Electricity is essential in all economic cycles, making this business a highly stable money-making machine.

Diversifying investments across this group—whether GULF with high performance or GUNKUL with long-term growth potential—allows investors to build a stable portfolio with profit opportunities while reducing risks associated with other sectors.