Amid market plummet on October 9, 2019, the share price of Global Power Synergy Public Company Limited (GPSC) moved in the opposite direction and close the morning session at ฿76.00/share, the highest in 1 year and 8 months, jumped ฿2.25/share or 3.05%. The highest share price in the session was ฿76.25/share while the lowest was ฿73.75/share with a trading value of 1,018 million baht.
Krungsri Securities (KSS) states that there is a rising interest in dividend plays and stocks with secure recurring income, especially power stocks. GPSC is an attractive proposition given inexpensive valuation and strong earnings growth after consolidating GLOW in 4Q19. Thus, giving a “BUY” recommendation with a target price of GPSC at ฿78.00/share.
Earlier this month, TRIS Rating assigned the company rating on GPSC at “AA-” with a “stable” rating outlook. The rating reflects the company’s position as the second-largest private power producer in Thailand, a highly predictable cash flow from its long-term power purchase agreements (PPA) with the Electricity Generating Authority of Thailand (EGAT) and the PTT Group, and the company’s prudent financial policy.
The rating also reflects GPSC’s important role as a flagship company in the power business under the PTT Group. The rating takes into consideration the company’s rising debt level following the acquisition of Glow Energy Public Company Limited (GLOW).