Which electric power stocks are good? An in-depth look at 8 leading stocks that are booming in the market

Market Overview of the Power Energy Stocks: When Electricity Becomes an Investment Opportunity

Recently, the electric power stock market has garnered increased attention from both new and experienced investors. This growth stems from several factors, such as policies supporting renewable energy, the country’s power development plan (PDP), and alternative energy plans (AEDP) that set the future direction of the electricity industry.

Power Plant Stocks are considered “Defensive Stocks” because this business is stable; electricity demand continually rises with economic and population growth, providing consistent income.

Types of Power Plants and Energy Sources: Categorized by Origin

Before delving into detailed analysis of individual stocks, it is essential to understand the types of energy used in production:

1. Solar Power (Solar Power) - Companies that build and operate solar power plants, an environmentally friendly renewable energy source.

2. Hydropower (Hydropower) - Uses flowing water to generate electricity, suitable for areas with sufficient water resources.

3. Natural Gas Power (Natural Gas Power) - Considered a clean and highly efficient energy source.

4. Other Renewable Energies - Wind, biomass, and ocean waves to reduce reliance on non-renewable energy.

In terms of capacity size, power plants are divided into IPP (more than 90 MW), SPP (10-90 MW), and VSPP (less than 10 MW).

8 Key Power Energy Stocks: The Top Contenders, Both Good and Bad

###Latest 6-Month Statistical Overview

###1. Banpu: A Leading Power Producer in Asia-Pacific

Banpu Power is a globally recognized power producer operating under the philosophy “Powering Society with Quality Megawatts.” Its assets are spread across 8 countries: Thailand, Laos, China, Japan, Vietnam, Indonesia, Australia, and the United States.

Key Data:

• Current stock price: 111.50 Baht
• 6-month revenue: 90,673.73 million Baht
• Net profit: 2,488.71 million Baht
• YTD: -5.88%
• Total capacity: 3,656 MW (including 11.20% from renewable energy)

Analysts forecast a target price of 8.00 Baht, with a minimum of 5.00 Baht and an average of 6.75 Baht.

###2. Gulf: A Leader in Integrated Energy Business

Gulf Energy Development is a leader in the energy sector, covering power generation, gas business, renewable energy, and infrastructure. It aims to create societal value with over 100 projects annually.

Key Data:

• Current stock price: 66.50 Baht
• 6-month revenue: 64,896.44 million Baht
• Net profit: 8,239.79 million Baht
• YTD: +54.49% (Outstanding Performance)
• Investment plan: 90,000 million Baht over 5 years for renewable energy

The company recently announced the establishment of NewCo to acquire and develop projects under the new PDP plan. Analysts expect an average price of 56.92 Baht, with a high of 68.00 Baht.

###3. GPSC: Innovation and Sustainability

Global Power Synergy PLC (GPSC) is a pioneer in innovation and sustainability on a global scale. Its operations include the production and distribution of electricity, steam, and other utilities.

Key Data:

• Current stock price: 46.25 Baht
• 6-month revenue: 48,426.98 million Baht
• Net profit: 2,292.55 million Baht
• YTD: -3.09%
• Recent loan: 7,000 million Baht from 3 banks, for clean energy projects (public and private sectors)

Analysts forecast an average price of 53.46 Baht, with a high of 61.00 Baht and a low of 43.50 Baht.

###4. BGRIM: Diversified Business Portfolio

B.Grimm Power continues to expand in thermal and renewable power generation. Currently, it is also venturing into healthcare, lifestyle, real estate, and digital technology.

Key Data:

• Current stock price: 23.40 Baht
• 6-month revenue: 28,344.78 million Baht
• Net profit: 607.17 million Baht
• YTD: -12.66%
• New contracts: Signed solar power purchase agreements with government agencies

Analysts forecast an average price of 26.66 Baht, with a high of 31.06 Baht and a low of 19.60 Baht.

###5. EA: Pure Energy and Green Technology Development

Amidst its “Energy for The Future” policy, Energy Absolute invests in renewable energy, batteries, and electric vehicles.

Key Data:

• Current stock price: 7.80 Baht
• 6-month revenue: 10,368.81 million Baht
• Net profit: 1,430.44 million Baht
• YTD: -81.36% (Significant Drop in H2)
• Products: domestically produced electric trucks, electric boats, and charging stations

Analysts forecast an average price of 17.33 Baht, with a high of 35.00 Baht and a low of 5.00 Baht.

###6. SSP: Renewable Energy as Core

S. Power Corporation is a leading smart player in renewable energy, investing in solar farms, solar rooftops, and other clean energy projects.

Key Data:

• Current stock price: 5.90 Baht
• 6-month revenue: 1,709.90 million Baht
• Net profit: 326.89 million Baht
• YTD: -25.62%
• Expansion plan: assets exceeding 30,000 million Baht in 2024 across Asia
• Credit rating: “BBB+” from the Thai Credit Rating Agency, reflecting financial stability

Analysts forecast a price of 8.90 Baht, an increase of approximately 50.85%.

(7. CKP: From Construction to Power

CK Power )Ch. Karnchang### started as a construction contractor but now invests heavily in power generation and sales, including hydropower, co-generation, and solar.

Key Data:

• Current stock price: 3.70 Baht
• 6-month revenue: 5,111.09 million Baht
• Net profit: -387.05 million Baht (temporary loss)
• YTD: +19.02%
• Investments in subsidiaries and joint ventures totaling 6 companies

Analysts forecast an average price of 4.70 Baht, with a high of 5.20 Baht and a low of 4.35 Baht.

(8. GUNKUL: Peer-Level Energy Platform

Gunkul Engineering has grown from a registered capital of 1 million Baht to over 30,000 million Baht, producing and selling renewable energy and innovative peer-to-peer energy trading platforms.

Key Data:

• Current stock price: 2.80 Baht
• 6-month revenue: 5,002.69 million Baht
• Net profit: 761.43 million Baht
• YTD: +2.86%
• New innovation: Volt Platform )B2C Marketplace### with 9-10 energy products under development

Analysts forecast an average price of 3.760 Baht, with a high of 5.00 Baht and a low of 2.70 Baht.

Why Are Electric Power Stocks Worth Investing In?

(1. Stability in Returns

Power plant businesses have a unique feature: generating stable and predictable income because electricity demand in society never decreases. Even during economic downturns, power demand remains resilient. Investing in power stocks thus offers better returns than bank deposits or other investments.

)2. Long-term Growth Factors

Electricity demand increases with economic growth, industrial expansion, and population growth. This creates opportunities for power companies to expand capacity and develop new projects, ensuring continuous revenue growth.

###3. Government Support Policies

Authorities and regulators view power generation as a key sector, guided by the PDP and AEDP plans to shape the future. Additionally, various incentives are provided to promote investment in clean and renewable energy.

###4. Long-term Power Purchase Agreements

Power plant companies often have long-term ###Power Purchase Agreements### with the government or consumers, providing revenue certainty and investment return stability.

How to Invest in Electric Power Stocks: Two Options for Investors

(Option 1: Direct Investment via Thai Stock Market

For stocks like GULF, BGRIM, BANPU, etc., investors can:

• Open accounts with leading Thai brokerage firms such as Bualuang Securities, Kasikorn Securities, or Maybank Kim Eng Securities
• Use popular trading platforms like STREAMINGPRO or ASPEN
• Minimum purchase: 100 shares
• Example: Buying 100 GULF shares at 50 Baht = 5,000 Baht capital. If the price rises to 55 Baht, profit = 500 Baht.

)Option 2: Using Foreign Broker CFDs

For flexible trading structures, investors can use Contract for Difference ###CFD###:

Advantages:

• Trade both directions (Long/Short)
• Leverage allows for smaller capital outlay with higher potential returns
• Trade various assets (stocks, gold, silver, indices)
• Real-time prices from actual markets
• Low minimum investment (starting from $50)
• Quick account setup (3 minutes)

Final Summary and Recommendations

Investing in electric power stocks is truly a “Defensive Stock” category because this business is sustainable and resilient to market volatility. Electricity is essential for production and consumption, making this industry fundamentally stable.

From the analysis of 8 leading companies (BANPU, GULF, GPSC, BGRIM, EA, SSP, CKP, GUNKUL), it is evident that:

• Management is actively investing in clean energy
• Long-term purchase agreements ensure revenue stability
• Government policies support the industry

For investors seeking diversification or limited-risk returns, investing in this group of stocks is suitable. However, it is important to study each company’s contract terms, performance, and policies before making investment decisions.