How to choose energy stocks? Analyzing the 8 key players in the power plant sector in 2023

Power generation stocks have been highly sought after by general investors for many years, whether beginners or seasoned investors. This group is considered “safe stocks” or Defensive Stocks, serving as a “statement” card in an investment portfolio, providing continuous and stable returns due to the essential nature of electricity for energy needs.

Why should you keep an eye on power generation stocks?

Consistent income stream - Electricity is an essential product with no substitutes. The demand for energy increases with economic growth, resulting in long-term, stable purchase contracts for power plants.

Government policies send positive signals - The (PDP) energy development plan and (AEDP) renewable energy plan set the growth direction for the industry, opening up new investment opportunities.

Clean energy wave - Transitioning to renewable energy creates new employment opportunities and large-scale projects, making it worth monitoring.

Top 8 power generation stocks in 2023

Comparison table of latest 6-month performance

1. BANPU - Global Power Conglomerate

Banpu Power ranks among the top in the market with the vision “Powering Society with Quality Megawatts.” It operates 41 power plants across Thailand, Laos, China, Japan, Vietnam, Indonesia, Australia, and the US.

Current Data:

• Stock Price: 111.50 Baht
• 6-Month Revenue: 90,673.73 million Baht
• Net Profit: 2,488.71 million Baht
• YTD: -5.88%
• Proportional Capacity: 3,656 MW (11.20% from renewable energy)

The company is advancing multi-dimensional expansion projects to meet increasing regional electricity demand in Asia-Pacific.

2. GULF - A Full-Cycle Energy Giant

Gulf Energy stands out by building alliances across electricity, gas, renewable energy, and infrastructure sectors. The company develops over 100 projects annually, fostering social development.

Current Data:

• Stock Price: 66.50 Baht
• 6-Month Revenue: 64,896.44 million Baht
• Net Profit: 8,239.79 million Baht
• YTD: +54.49% (Market momentum!)
• Strategy: Invest 90 billion Baht in renewable energy over 5 years

GULF recently announced a new company and proposed acquisitions of ADVANCE and THCOM securities, reflecting aggressive expansion policies.

3. GPSC - Innovation in Clean Energy

Global Power Synergy sets four main pillars “4S Strategy” for producing steam, industrial water, and utilities to ensure global efficiency and stability.

Current Data:

• Stock Price: 46.25 Baht
• 6-Month Revenue: 48,426.98 million Baht
• Net Profit: 2,292.55 million Baht
• YTD: -3.09%

Highlight: Secured a 7 billion Baht loan from government and private banks, supporting clean energy projects and achieving Net Zero goals.

4. BGRIM - Leader in Thermal and Renewable Energy

BGRIM Power operates in electricity, combined heat, and renewable energy sectors, expanding into healthcare, lifestyle, real estate, and digital fields.

Current Data:

• Stock Price: 23.40 Baht
• 6-Month Revenue: 28,344.78 million Baht
• Net Profit: 607.17 million Baht
• YTD: -12.66%

Signaling point: Signed solar power sales contracts with the government, creating new profit streams in renewable energy.

5. EA - Electric Vehicle Pioneer

Bureau of Energy Development promotes “Energy for The Future,” developing clean energy, batteries, electric vehicles, commercial EVs, and electric ships.

Current Data:

• Stock Price: 7.80 Baht
• 6-Month Revenue: 10,368.81 million Baht
• Net Profit: 1,430.44 million Baht
• YTD: -81.36% (Turning away)

Recent focus: Supporting Thai-made electric pickup trucks, aligning with business and environmental goals.

6. SSP - The New Growth Pig

Sermsang Power is a renewable energy company involved in solar farms, solar rooftops, and other renewable projects. It aims to expand assets beyond 30 billion Baht by 2024 across Asia.

Current Data:

• Stock Price: 5.90 Baht
• 6-Month Revenue: 1,709.90 million Baht
• Net Profit: 326.89 million Baht
• YTD: -25.62%

Trust factor: Credit rating “BBB+” from Tiersen, indicating strong financial standing. The company plans to expand renewable energy offerings in the coming year.

7. CKP - Entering the Energy Game

Ch. Karnchang, originally known for construction, now operates hydro, cogeneration, solar, and subsidiary investments totaling 6 companies.

Current Data:

• Stock Price: 3.70 Baht
• 6-Month Revenue: 5,111.09 million Baht
• Net Profit: -387.05 million Baht (Negative!)
• YTD: +19.02%

Though not shining brightly, the stock price has risen 19%, indicating the “market” sees growth opportunities in expansion plans.

8. GUNKUL - Thailand’s Energy Wikipedia

Gunkul Engineering started with a 1 million Baht capital and has grown into a 30-billion Baht empire, focusing on renewable energy and Peer-to-Peer Energy Trading Platform (Volt).

Current Data:

• Stock Price: 2.80 Baht
• 6-Month Revenue: 5,002.69 million Baht
• Net Profit: 761.43 million Baht
• YTD: +2.86%

Future outlook: Volt will bring B2C services to the marketplace and develop 9-10 energy products.

How to choose: What’s right for you?

Type 1: Conservative investors
Choose BANPU or GULF — stable main companies with secure purchase contracts. They may not offer spectacular returns but provide peace of mind.

Type 2: Profit-seeking traders
Focus on GULF, EA, GUNKUL — real players amid the renewable energy trend with high growth potential.

Type 3: Centralized investors
SSP, BGRIM — smaller size but clear growth plans, suitable for moderate risk-takers.

How to buy power generation stocks

Path 1: Thai stock market
Open an account with a broker (Bualuang Securities, Kasikorn Securities, or others). Minimum purchase: 100 shares. Use trading programs like STREAMINGPRO or ASPEN.

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

Path 2: International broker platforms
Some platforms offer CFD (Contract for Difference), allowing smaller capital, leverage, and trading a variety of global commodities.

Summary

Power generation stocks are “safe stocks” that are truly worthwhile because electricity has no substitutes. Energy demand increases with economic growth. Investing in this sector is like a “river bend” in your investment portfolio.

Whether through BANPU, GULF, EA, or GUNKUL, each piece represents different aspects of the global energy transition.

Most importantly, remember that investing involves risks and may not suit everyone. Study more information or consult an investment advisor before making decisions.