Analysts Are Positive on GPSC’s Huge Expansion, Giving a “Buy” Rating with a TP at Bt112

Analysts had positive view on GPSC's acquisition, giving a target price as high as Bt112 per share.

The acquisition of GPSC in an Indian solar power plant business at an investment value of 14.8 billion baht is the second biggest acquisition this week after the 148 billion baht deal between PTTGC and Allnex.


The share price of GPSC rose ฿3.00/share or 4.03% to close the morning session at ฿77.50/share with a trading value of 2,861 million baht. However, analysts are expecting the share price of GPSC to surge even higher than that.


FSS International Investment Advisory Securities Co., Ltd. (FSSIA) had a positive view on the acquisition given the acquisition cost is reasonable at THB10m/MW even with additional investment for the remaining 2.35GW under construction projects, while the M&A will be EPS accretive to boost EPS in 2021 by 27% if the full year operations of all solar farms are added.

FSSIA gave a “BUY” recommendation on GPSC with a target price at Bt112 per share.


Maybank Kim Eng Securities (Thailand) (MBKET) stated that the MWe in Avaada is the size of 11% of GPSC’s production capacity, and after the completion of construction in 2022, GPSC will have a 31% increase in production. The acquisition will fasten the process of GPSC in reaching its renewable energy target from 12% to 30% within 2025.

MBKET stated that the acquisition has a reasonable investment value at 14.9 billion baht, and after the additional investment for the remaining under construction projects, the cost will be 25.6 million baht per megawatt.

In addition, MBKET expected positive feedback from the market from this acquisition, which will strengthen GPSC’s renewable energy business and the PER could also expand as well. MBKET gave a “BUY” recommendation on GPSC with a target price at Bt100 per share.

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