Analysts Are Positive towards GULF in 1Q21, Recomm. “BUY” with a TP of ฿41.40

The share price of Gulf Energy Development Public Company Limited (GULF) as of Feb 23 closed at ฿34.25/share, increasing ฿0.75/share or 2.24% with a trading value of 793 million baht.


Country Group Securities expected GULF to deliver an improving performance in 1Q21 both YoY and QoQ due to a revenue recognition from BKR2 project in Germany, a decrease in natural gas cost that would strengthen gross profit margin and a better operating result from IPPs. Reiterating a positive view toward GULF’s 2021-2024 outlook, expecting P/E to grow at the average of 20% per year, thus, giving a “BUY” recommendation with a target price of ฿41.40/share


Phillip Securities stated GULF’s 4Q20 has beat market projection, maintaining a “BUY” rating with a target price of ฿40.00/share on a positive prospect. Expecting GULF to record a net profit of 7,000 million baht this year, an increase of 60% YoY, driven by a solid backlog for the next 2-3 years.    


KTBST Securities said the operating result in 4Q20 was in line with a previous expectation and GULF is still on a growth path, recommending “BUY” with a upgraded target price of ฿40.00/share to reflect the company’s investment strategy. KTBST believed GULF to outperform the market this year due to a continued growth in earnings by 49% YoY from the IPP with a production capacity of 5.3GW scheduled to commence the COD from this year onwards.  


KGI Securities also stated that GULF’s 4Q20 core profit of 1.24 billion baht (+84.9% YoY, -6.4% QoQ) was in line with the Bloomberg consensus due to lower than expected interest expense from Borkum Wind Farm, maintaining a rating of Outperform with a 2021 target price of ฿38.25/share based on DCF. A healthy balance sheet (low net interest bearing debt to equity of 1.4x) would provide room for further acquisitions.

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