Electric Power Energy Stocks: Investment Value and How to Choose the Right One

Why Are Electric Utility Stocks Popular Among Investors

Electric utility stocks are among the most stable securities that provide moderate returns for Thai investors. Their business structure—producing energy for consumption by the public and industrial sectors—ensures consistent demand. Stock prices in this sector often fluctuate based on production conditions, electricity consumption levels, and government energy policies.

Both new and seasoned investors often view power plant stocks as a form of investment guarantee or defensive stocks due to the unavoidable need for electricity.

Key Factors in Evaluating Electric Utility Stocks

1. National Energy Policy and Development Plans

The electricity generation business in Thailand is governed by government planning through the (Power Development Plan: PDP) and the (Alternative Energy Development Plan: AEDP). These policies set the direction for investment and expansion of power producers across various sectors.

2. Expansion Strategies and Business Plans

Investors should study how companies plan to develop—whether through building new power plants, increasing capacity, seeking new investment partners, or expanding into foreign markets.

3. Power Purchase Agreements

Studying the terms, duration, and conditions of power purchase agreements helps investors clearly assess revenue recognition statistics.

4. Types and Formats of Power Generation

Power producers are categorized by capacity:

• Large Private Power Plants (IPP): Over 90 MW
• Small Private Power Plants (SPP): 10-90 MW
• Very Small Private Power Plants (VSPP): Less than 10 MW

Types of Power Plants by Energy Source

Electricity stocks can be classified based on the energy source used:

Solar Power Stocks - Companies producing electricity from solar energy, representing a clean energy source with high growth potential in the future.

Hydropower Stocks - Electricity generation from water energy, a stable renewable energy source offering consistent returns.

Natural Gas Power Stocks - Using natural gas, considered a clean and efficient energy source.

Renewable Energy Stocks - Including wind, biomass, and other alternative sources that reduce reliance on traditional energy.

Analysis of 8 Leading Power Producers

Comparison table of the latest 6-month performance

1. BANPU - A Global Energy Producer

Banpu Power is a globally standardized energy producer operating under the principle “Powering Society with Quality Megawatts.” It supplies electricity to 8 countries in the Asia-Pacific region, including Thailand, Laos, China, Japan, Vietnam, Indonesia, Australia, and the United States, with a network of 41 power plants.

Performance in the first 6 months:

• Revenue: 90,673.73 million Baht
• Net profit: 2,488.71 million Baht
• Current stock price: 111.50 Baht
• Year-to-date return: -5.88%

Banpu’s capacity based on investment proportion is 3,656 MW, with renewable energy accounting for 11.20%.

2. GULF - A Leader in Comprehensive Energy Business

Gulf Energy Development is a leading energy producer in Thailand, actively expanding into additional sectors such as power generation, gas, renewable energy, hydropower, and utilities. Recently, it announced a full-scale investment plan in renewable energy aligned with the new PDP policy, with a 5-year investment plan worth 90,000 million Baht.

Performance in the first 6 months:

• Revenue: 64,896.44 million Baht
• Net profit: 8,239.79 million Baht
• Current stock price: 66.50 Baht
• Year-to-date return: +54.49%

GULF has received support through acquisitions of securities in ADVANCE and THCOM, demonstrating its growth commitment.

3. GPSC - Innovator in Energy Technology

Global Power Synergy operates as a leading innovator in sustainable energy, implementing the 4S strategy to produce and distribute electricity, steam, industrial water, and other utilities efficiently. Recently, GPSC secured a long-term loan of 7,000 million Baht from three financial institutions to advance clean energy projects and achieve Net Zero targets.

Performance in the first 6 months:

• Revenue: 48,426.98 million Baht
• Net profit: 2,292.55 million Baht
• Current stock price: 46.25 Baht
• Year-to-date return: -3.09%

4. BGRIM - Demand-Driven Power Producer

B.Grimm Power focuses on energy production from combined heat and renewable sources. The company is committed to providing high-quality energy solutions and expanding into other areas. Recently, it signed a power purchase agreement for solar energy with the government, opening new growth opportunities for the long term.

Performance in the first 6 months:

• Revenue: 28,344.78 million Baht
• Net profit: 607.17 million Baht
• Current stock price: 23.40 Baht
• Year-to-date return: -12.66%

5. EA - Leader in Clean Energy Innovation

Biodiversity Energy operates under the concept “Energy for The Future,” leveraging innovation and technology to develop clean energy, including renewable energy, storage batteries, and electric vehicles. It has created social, economic, and environmental value through commercial electric trains, electric boats, and charging systems.

Performance in the first 6 months:

• Revenue: 10,368.81 million Baht
• Net profit: 1,430.44 million Baht
• Current stock price: 7.80 Baht
• Year-to-date return: -81.36%

6. SSP - Pioneer in Renewable Energy

Sustainable Power Corporation has experienced rapid growth in Thailand, focusing on renewable energy and alternative solutions. It develops solar farms, rooftop solar projects, and various renewable energy projects continuously. The company plans to expand assets exceeding 30,000 million Baht, with investments across Asia.

Performance in the first 6 months:

• Revenue: 1,709.90 million Baht
• Net profit: 326.89 million Baht
• Current stock price: 5.90 Baht
• Year-to-date return: -25.62%

SSP maintains a corporate credit rating of “BBB+,” reflecting a stable financial system.

7. CKP - Energy Operator from Construction Business

CK Power leverages its reputation in large-scale construction to expand into energy. It invests in hydropower, cogeneration systems, and solar projects through six subsidiaries and joint ventures.

Performance in the first 6 months:

• Revenue: 5,111.09 million Baht
• Net profit: -387.05 million Baht (Loss)
• Current stock price: 3.70 Baht
• Year-to-date return: +19.02%

8. GUNKUL - Renewable Energy Producer with Digital Innovation

Gunkul Engineering has been in the energy business since its inception, with a current valuation in the billions. Its strength lies in producing and selling renewable energy to both government and private sectors, along with developing a peer-to-peer energy trading platform, an innovative Gunkul Spectrum product.

Performance in the first 6 months:

• Revenue: 5,002.69 million Baht
• Net profit: 761.43 million Baht
• Current stock price: 2.80 Baht
• Year-to-date return: +2.86%

In the future, Volt (the company’s new service) will play an increasingly important role in a B2C marketplace, offering 9-10 energy products under development.

Reasons to Invest in Electric Utility Stocks

( Balanced Returns and Risks

Electric utility stocks carry risks similar to other equities but generally offer higher returns than bank deposits. Long-term investors can diversify their risk effectively.

) Consistent Profitability

Electric power generation businesses generate steady and continuous income as societal demand for electricity increases. This provides long-term profit stability.

Growth Opportunities

Power producers have ongoing expansion opportunities through building new plants or increasing capacity to meet rising electricity demand. Additionally, some companies benefit from government policies supporting the energy industry.

How to Invest in Electric Utility Stocks

Steps for Investing in the Thai Stock Market

To buy and sell stocks like GULF and BGRIM, investors should:

1. Open an account with a securities company that offers Thai stock trading services. Choose based on your needs and trading platform features.

2. Select a trading platform—most traders use online trading programs that support real-time trading.

3. Prepare investment funds—the minimum purchase is 100 shares per transaction. For example, buying 100 GULF shares at 50 Baht each requires 5,000 Baht.

4. Calculate profits—if the price rises from 50 Baht to 55 Baht, you earn 500 Baht (100 shares × 5 Baht).

Other Investment Methods

Besides direct stock trading on the Thai stock exchange, investors can consider other investment formats according to their ability and preferences.

Summary

Power plant stocks are viewed as defensive stocks because electricity is essential for both industrial and household use. Energy security is therefore of utmost importance.

Investing in electric utility stocks is a good way to diversify your portfolio, especially for investors not ready to accept high risks.

From the analysis of 8 leading power companies, it is clear that each has different strengths and growth potentials. Investors should carefully study detailed financial data to select the electric stock that aligns with their investment goals.