The share price of Electricity Generating Public Company Limited (EGCO) rose ฿6.50/share or 3.68% to close the morning session on June 10, 2021, at ฿183.00/share with a trading value of 860 million baht.
Country Group Securities (CGS) has given a “BUY” recommendation on EGCO with a target price at ฿278/share.
From the analyst meeting, CGS expected the 2Q21 core earnings of EGCO to remain flat YoY, while improving QoQ on the back of better contribution from Paju ES and KEGCO recovering from maintenance shutdown and improving contribution from XPCL as monsoon begins.
Moreover, the company planned to expand 1.0GWe power plant capacity in 2021 (+16% growth from present 6.0GWe) in which 27% of the target was achieved in 2Q21 by acquiring a minority stake in Linden cogen power plant in the USA.
In addition, EGCO is trading with an inexpensive price below -1SD PBV (10-year average), and provides a decent dividend yield of 3.8 to 4.2% for 2021-2023E. CGS believed the new M&As in 2021 will aid earnings growth and stock performance.