What are power plant stocks: An in-depth exploration of 8 leading companies with excessive profits

Why Power Utility Stocks Attract Investors

In the current era, power utility stocks have become a popular choice for those seeking a robust portfolio structure. Electricity is an essential commodity that cannot be avoided in both manufacturing sectors and household consumption. This makes these stocks known as “Defensive Stocks” because they tend to provide steady returns compared to bank deposits.

The power generation business in Thailand is regulated by the government through the (PDP) (Power Development Plan) and (AEDP) (Alternative Energy Development Plan), which set the growth direction for this sector. As electricity demand is expected to increase with economic growth, this further strengthens the position of companies in this group.

Types of Power Plants Dominating the Market

When discussing energy sources for power plants, the current market is divided into several types:

Solar Power is expected to advance rapidly due to its environmental friendliness and favorable government policies.

Hydropower remains highly stable, especially in areas with sufficient natural water resources.

Natural Gas is considered a clean and efficient fuel, with high potential for medium-scale production.

Other Renewable Energies such as wind, biomass, or wave energy are still in development stages.

Companies in this sector are also categorized by size into IPP (Large private power plants with capacity >90 MW), SPP (Small private power plants with capacity 10-90 MW), and VSPP (Very Small private power plants with capacity <10 MW).

8 Companies: Analyzing Profit Structure and Growth

Operating Data

Banpu: Regional Leader

Banpu Power is estimated to be a global energy producer with extensive presence across Asia-Pacific, operating over 40 power plants in Thailand, Laos, China, Japan, Vietnam, Indonesia, Australia, and the United States. Its capacity accounts for 3,656 MW, with renewable energy sharing 11.20%.

In the first half of the year, BANPU recorded revenue of 90,673.73 million THB and net profit of 2,488.71 million THB. The current stock price is 111.50 THB, with YTD performance down -5.88%. Analysts expect the price could reach a peak of 8.00 THB.

Gulf: Pioneer in Integrated Business

Gulf Energy Development is a diversified group involved in power generation, gas, renewable energy, and infrastructure. Its sustainability achievements are reflected through participation in over 100 social projects last year.

In the first half, Gulf generated revenue of 64,896.44 million THB and net profit of 8,239.79 million THB. The current price is 66.50 THB, showing a remarkable increase of +54.49% YTD. The company is preparing for investments in renewable energy under the new PDP plan, establishing NewCo, and considering share acquisitions for ADVANCE and THCOM.

GPSC: Smart Energy Management

Global Power Synergy (GPSC) operates under the 4S strategy, focusing on power generation, steam, and utilities with international standards of efficiency and stability.

In the first half, GPSC reported revenue of 48,426.98 million THB and net profit of 2,292.55 million THB. The current stock price is 46.25 THB, with YTD performance at -3.09%. Recently, GPSC secured a long-term loan of 7 billion THB from more than three financial institutions to advance clean energy projects.

BGRIM: Expanding Business Scope

B.Grimm Power specializes in combined heat and power and renewable energy. The company is also venturing into other sectors such as healthcare, lifestyle, real estate, and digital technology.

In the first half, BGRIM reported revenue of 28,344.78 million THB and net profit of 607.17 million THB. The current price is 23.40 THB, with YTD at -12.66%. Recently, BGRIM signed a solar power purchase agreement with the government, enabling the company to supply energy to the government market.

EA: Electric Vehicle Innovation

Biod Energy stands out in developing clean energy technologies, from renewable energy, batteries, to electric vehicles. It has innovated from commercial EVs, electric boats, charging stations, to lithium-ion batteries.

In the first 6 months, EA generated revenue of 10,368.81 million THB and net profit of 1,430.44 million THB. The stock price is 7.80 THB, with YTD down sharply by -81.36%. The company is also driving the development of Thai-made electric pickup trucks to meet business demands.

SSP: Green Project Pioneer

Siam Solar Power (SSP) excels in renewable energy projects, focusing on various solar power plant developments—from ground-mounted, rooftop, to large-scale projects.

In the first half, SSP recorded revenue of 1,709.90 million THB and net profit of 326.89 million THB. The current stock price is 5.90 THB, with YTD down -25.62%. However, the credit rating from Tris is “BBB+” indicating resilience. The company plans to expand further next year.

CKP: Diversified Power Portfolio Management

CK Power evolved from a construction contractor to a power producer. It manages hydropower, cogeneration, and solar projects through six subsidiaries and affiliates.

In the first half, CKP reported revenue of 5,111.09 million THB and a net loss of -387.05 million THB. The current price is 3.70 THB, with YTD performance up +19.02%.

GUNKUL: Energy Platform Expert

Gunkul Engineering grew from a registered capital of 1 million THB to a business worth over 30 billion THB. It produces and supplies renewable energy to both government and private sectors. It also develops a Peer-to-Peer Energy Trading Platform via Gunkul Spectrum.

In the first half, GUNKUL posted revenue of 5,002.69 million THB and net profit of 761.43 million THB. The stock price is 2.80 THB, with YTD increase of +2.86%. Looking ahead, Volt is expected to play a more significant role, expanding services into a Marketplace with 9-10 energy products under development.

Reasons to Invest in Power Utility Stocks

High-Quality Profits: Power generation businesses tend to generate steady income due to long-term purchase agreements, making them less volatile and suitable for medium-term investors.

Stability and Growth: Increasing electricity demand driven by economic expansion provides long-term growth opportunities.

Policy Benefits: Government incentives and support vary by project type, offering opportunities to extend or renew power purchase agreements.

Expansion Opportunities: Companies may invest in new power plants or increase capacity as demand grows, leading to new power purchase agreements.

How to Start Trading Power Utility Stocks

Option 1: Through Thai Brokers

For Thai market stocks like GULF, BGRIM, open an account with brokers such as Bualuang Securities, Kasikorn Securities, or Maybank Kim Eng Securities.

Popular trading platforms include STREAMINGPRO and ASPEN, widely used by traders.

Minimum purchase is 100 shares. For example, buying 100 GULF shares at 50 THB = 5,000 THB. If the price rises to 55 THB, profit is 500 THB.

Option 2: Through Foreign Brokers (CFD)

CFD (Contract for Difference) allows trading on both sides, with leverage, reducing capital requirements, and offering a wide range of products.

Broker MiTrade provides this service via website, mobile app, and desktop.

Minimum deposit is $50. Account opening takes only 3 minutes. The demo program offers $50,000 virtual funds for free.

Summary and Recommendations

Power utility stocks are considered “Defensive Stocks” because energy is continuously needed by producers and consumers. Compared to the overall market, these stocks serve as a main safeguard, suitable for investors seeking diversification or with limited risk appetite.

Based on the above, the 8 recommended companies—BANPU, GULF, GPSC, BGRIM, EA, SSP, CKP, and GUNKUL—each have different operational styles and growth potentials. Investing in power utility stocks requires careful consideration of fundamental data, government policies, and power purchase agreements before making decisions.