Global Power Synergy PCL

Innovest X Securities stated that the new Power Development Plan (PDP2026) is nearly complete, with public hearings scheduled for September 8, and it is expected to be approved by the National Energy Policy Committee within the end of 2026. The first auction is expected to take place in 2027, which will be a catalyst for a re-rating of utility stocks. The plan increases the share of clean energy to at least 65% and lifts the cap on Direct PPA from the previous 2,000 MW for the industrial sector and data centers. GULF has potential for additional investment of around 240-290 billion baht under a net debt-to-equity ratio of 1.0 times, while GPSC has potential for additional investment of around 95-114 billion baht under a net debt-to-equity ratio of 0.8 times. GUNKUL has flexible financing capacity of 39-44 billion baht, while BGRIM has more financial constraints due to a high net debt-to-equity ratio of 2.1 times, allowing only 23-28 billion baht in additional investment. GULF remains the top pick in the group, and GUNKUL is the wildcard pick, while GPSC and BGRIM are secondary picks.

The Ministry of Commerce reported that Thailand's export value in July 2026 stood at 34.8 billion US dollars, expanding 21.6% year-on-year, higher than the market's expectation of 17.8%. Meanwhile, imports for the same month were 38.4 billion US dollars, up 37.8%, lower than expected, resulting in a trade deficit of 3.61 billion US dollars, less than forecast. Products with good growth include rubber, processed chicken, pet food, processed canned seafood, and electronic goods. Stocks in these sectors, such as STA, GFPT, ITC, TU, DELTA, HANA, and KCE, benefit accordingly. In the first seven months of the year, exports totaled 232 billion US dollars, up 18.2%, while imports were 267 billion US dollars, up 37.8%, with a trade deficit of 35.4 billion US dollars. The Ministry of Commerce sees support from global demand for technology products and digital infrastructure, as well as accelerated imports to prepare for US trade policies. Meanwhile, brokers like Krungsri Securities and Phillip Securities view positively on export-related stocks and recommend top picks such as DELTA, HANA, KCE, AMATA, GULF, GPSC, KBANK, and KTB.

Asia Plus Securities Research Department stated that the overall stock market still faces pressure from inflation and bond yields that are likely to remain high. The average oil price in August remains higher than in July, although oil prices have recently started to decline due to hopes for the opening of the Strait of Hormuz. Meanwhile, El Niño has returned as another supply-side risk, with rainfall in the Panama Canal area below average, leading the Panama Canal to prepare to limit the number of transiting ships starting in September, which could increase transportation costs and exacerbate pressure on global food and commodity prices. Therefore, the global inflation picture has not fully eased. The latest US PCE for July stood at 3.7% year-on-year, slightly above expectations, causing US Treasury yields to rise. The market thus still faces risks from higher-for-longer yields, compressed P/E ratios, and slower fund flows into risk assets, especially growth stocks and those with high valuations. However, the Thai stock market is beginning to see additional support from a stronger baht, along with the Thailand Focus 2026 event held from August 26-28, which attracted around 220 foreign institutional investors from 74 institutions, with 78 listed companies meeting investors. This is an opportunity to boost confidence in Thai stocks among global fund managers, but such support is not yet sufficient to trigger fund flows into all stock groups. During this period, it is recommended to focus on selective buying with specific support factors rather than broad-based buying. The strategy thus emphasizes stocks with multiple layers of specific catalysts, including BGRIM, GPSC, and GULF, which benefit from softer oil/energy prices reducing fuel costs, while a stronger baht helps lower cost burdens and foreign currency debt. SCC and PTTGC are supported by lower oil prices, which ease feedstock/cost pressures. TTB and KKP stand out with attractive interim dividend yields, helping cushion market volatility. CK and STECON represent the domestic investment/infrastructure theme, which may be highlighted as key stories in presenting Thailand to foreign investors. DELTA has positive sentiment from NVIDIA's earnings released after market close, with NVIDIA reporting Q2 fiscal 2026 revenue of $96.2 billion, up 106% year-on-year, and data center revenue of $89 billion, up 117% year-on-year, underscoring that the AI infrastructure cycle remains strong, which supports sentiment for stocks in the electronics and AI supply chain. CENTEL has speculative interest from hopes of tourism stimulus measures, as well as Phuket tourism sentiment potentially boosted by entertainment and tourism activities during this period. PSL and RCL receive positive sentiment from El Niño, as the Panama Canal prepares to limit ship transits due to low rainfall, leading to longer voyage times and queues, reducing vessel supply and potentially pushing freight rates higher.

Yuanta Securities (Thailand) released an analysis after the Thailand Focus event, stating that the new Power Development Plan (PDP) will be positive for power plant stocks. It is expected that the new PDP will be clarified as early as September 2026, with a renewable energy share of no less than 60%, and will include Carbon Capture, Small Modular Reactor (SMR), and Direct PPA. The seminar featured Mr. Eknat Prompan, Minister of Energy, Dr. Harald Link, Chairman of B.Grimm Power Public Company Limited (BGRIM), and Mr. Yanis Ghitis, Chief of Commercial and Investment Officer of Digital Edge. Mr. Eknat stated that Direct PPA will help data centers access electricity at reasonable prices, and it is no longer limited to 2,000 megawatts, with all industrial groups allowed to participate. The 200 billion baht loan will support Solar Rooftop, Net Billing, and grid improvements. Dr. Harald Link said that Thailand's water supply is sufficient for many data centers, and seawater can be used. The research team favors GULF, GPSC, GUNKUL, and WHAUP, as well as data center-related stocks such as WHA, AMATA, and STECON.

Power plant stocks rose after KKPS turned more positive on Thailand's utility sector, citing the PDP 2026 plan and direct power purchase agreements to support data centers. At 10:58 a.m., BGRIM stood at 19.30 baht, up 3.76 percent, GULF at 63.75 baht, up 1.19 percent, and GPSC at 52.75 baht, up 4.46 percent. KKPS raised its profit forecasts for 2027 to 2030 for GULF by 12 to 26 percent, for GPSC by an average of 6 percent, and for BGRIM by an average of 15 percent. It also raised target prices for GULF to 75 baht, GPSC to 60 baht, and BGRIM to 25 baht, maintaining buy recommendations on all three. KKPS views the draft PDP 2026, expected to be released in September 2026, as potentially opening the way for additional capacity investment and marking the start of a re-rating for the whole sector. Meanwhile, Krungsri Securities said the draft PDP 2026 is being submitted to the energy minister for consideration, with public hearings expected in September 2026 before it goes to the National Energy Policy Council for review in October to November 2026. GPSC aims to capture about 25 percent of new capacity under PDP 2026, covering 2.2 gigawatts of solar power, 0.5 gigawatts of wind power, 0.5 gigawatts of hydropower, and independent power producer projects totaling 2 to 5 gigawatts. In the best-case scenario, this would require total investment of 195 to 236 billion baht and generate additional profit of 7.95 billion baht, adding 27.90 baht per share to the stock's fair value.

Bualuang Securities analyzed third-quarter 2026 profit trends, saying overall net profit and core profit are likely to expand compared with the same period last year, but are expected to slow from the previous quarter. Key support comes from Brent crude oil prices rising an average of 28 percent year on year, Singapore GRM refining margins surging 434 percent year on year, and wider petrochemical spreads for both HDPE and PET in the West, along with momentum from mobile and internet service revenue, electronics demand tied to the AI and data center cycle, and the recognition of new production capacity and overseas power plant profits at GULF. At the same time, higher jet fuel costs are pressuring airlines, and narrowing interest margins are weighing on the banking sector. Groups whose core profit grew year on year were led by energy, petrochemicals, construction materials, electronics, communications, and retail. Groups whose core profit fell year on year were led by transport and banking. Bualuang Securities recommends a selective investment strategy focused on stocks whose third-quarter profit trends are still expected to grow strongly, have not seen sharp profit downgrades over the past three months, and have clear positive factors supporting recovery. These include KCE, CBG, ITC, BH, BDMS, AOT, CENTEL, and GPSC.

Bualuang Securities maintains an overweight stance on power plant stocks relative to the market, expecting the draft PDP2026 plan to be announced at the end of September. The plan still targets 60% renewable energy and an average electricity tariff of around 4 to more than 4 baht per unit. Data center power demand has a base case of 8,811 megawatts through 2050, and the first batch of 2,000 megawatts under direct power purchase agreements remains a near-term catalyst. The research team sees GULF, GUNKUL and WHAUP as clear near-term beneficiaries, while GPSC and BGRIM should see pressure ease as fuel cost pass-through and plant restarts improve in 2027. The brokerage currently recommends buying GULF with a target price of 82 baht, GUNKUL at 5.50 baht, and BGRIM at 20 baht, while target prices for GPSC and WHAUP are under review. Second-quarter 2026 operating results for the five power plant companies under coverage totaled 13.7 billion baht, up 36% from a year earlier and 15% from the previous quarter, on combined revenue of 85 billion baht, up 8% from a year earlier and 20% from the previous quarter. Combined net profit fell 76% from a year earlier to 16 billion baht because the second quarter of 2025 included a special item for GULF from the GULF-INTUCH merger of 56.1 billion baht. Excluding that item, the group's underlying profit picture remains strong. GULF posted core profit of 10.4 billion baht, up 46% from a year earlier and 11% from the previous quarter, driven by renewable and independent power producer businesses. GUNKUL reported 567 million baht, up 9% from a year earlier and 31% from the previous quarter, helped by EPC backlog recognition. WHAUP reported 502 million baht, up 116% from a year earlier and 150% from the previous quarter, as Gheco-One returned to full operation. GPSC and BGRIM remain pressured by gas and coal costs with delayed pass-through to the fuel tariff.

The subcommittee drafting Thailand's Power Development Plan, or PDP2026, has considered four scenarios for the main fuel mix in power generation. Each scenario has renewable energy accounting for more than 60 percent of power generation, up to a maximum of 80 percent, while the share of small modular reactors, or SMRs, is set within a range of about 2,400 to 4,000 megawatts. Some scenarios may exceed 4,000 megawatts. During the first 10 years of the plan, the Electricity Generating Authority of Thailand, or EGAT, will remain the lead agency to study and carry out the initial phase of projects, after which private sector investment is expected to be opened up further in the future. The draft plan will be submitted to the Minister of Energy for consideration within this week, and public hearings are expected to begin by early September, before the plan can be announced in time within this year. The research unit of Asia Plus Securities said the PDP2026 will be a positive factor for power plant operators over the medium to long term, because it opens opportunities for a new investment cycle in power plant projects, especially renewable energy, and allows expansion into energy storage systems as well as SMR technology. Meanwhile, electricity demand from data centers and AI will be another key driver of investment in the power system, particularly demand for stable electricity from clean energy sources, and the opening of direct power purchase agreements will allow large electricity users to procure renewable power directly. The research unit selected top picks including Gulf Development Public Company Limited, or GULF, with a target price of 80 baht, and Gunkul Engineering Public Company Limited, or GUNKUL, with a target price of 6.40 baht. Krungsri Securities viewed progress on energy measures and plans as a positive factor for stocks in the infrastructure and power technology theme, with standout names including GULF, Global Power Synergy Public Company Limited, or GPSC, WHA Utilities and Power Public Company Limited, or WHAUP, and GUNKUL. In trading on August 17, 2026, power plant stocks rose, led by WHAUP closing at 8.20 baht, up 5.81 percent, GPSC closing at 49.50 baht, up 2.59 percent, BGRIM closing at 18.20 baht, up 2.82 percent, GULF closing at 65.25 baht, up 1.16 percent, and GUNKUL closing at 5.15 baht, up 0.98 percent.

PTT Public Company Limited will receive interim dividends totaling more than 12.13 billion baht from two subsidiaries, PTTEP and GPSC. PTTEP announced an interim dividend for the first six months of 2026 at 4.50 baht per share, while GPSC announced a dividend of 0.55 baht per share. PTT holds 2,532,340,489 PTTEP shares, equivalent to 11.4 billion baht in dividends, and 1,332,955,135 GPSC shares, equivalent to 733 million baht, for a combined total of 12.13 billion baht.

Asia Plus Securities' research department said second-quarter 2026 profits of Thai listed companies were the highest on record, beating expectations by about 13%, but still lagging US tech stocks, where NASDAQ beat expectations by 53%, causing some funds to rotate into tech stocks and keeping Thai stocks under pressure and hard to move. It recommends stocks with supportive factors, namely PTT, GULF, GPSC, BGRIM, and stocks expected to post standout third-quarter profits, namely CPF, BDMS, BH, PR9, and KCE. Data from 594 companies, representing 98% of market capitalisation, show second-quarter 2026 net profit surged to 386 billion baht, growing 10.8% quarter-on-quarter and 12.5% year-on-year, with the energy sector contributing as much as one-third of profits. Commodity-linked stocks such as energy, petrochemicals, food, and agriculture accounted for as much as 44% of total market profit, compared with the normal level of about 30%. First-half profit already accounted for more than 60% of full-year estimates, making third- and fourth-quarter profit targets of only about 19% per quarter, or roughly 228 billion baht, not difficult to achieve. There is also a chance that full-year EPS estimates will be revised upward at year-end, adding upside to the SET Index.

GPSC expects continued growth in the third quarter of 2026, booking a special gain of around 200 million baht from the sale of its stake in Sheng Yang Energy Company Limited, or SYE, a solar power plant in Taiwan, after closing the deal in early July 2026. Core profit is also set to expand, driven by hydropower plants in Laos entering the high season and strong demand from industrial customers. Natural gas costs in the third quarter are projected at 380 to 390 baht per million BTU, amid Middle East tensions. The company targets total capacity of 13,666 megawatts by 2030, while advancing into data centers and clean energy for long-term growth.

Asia Plus Securities assesses that the global investment landscape is facing challenges on all fronts, amid a sharper-than-expected slowdown in US employment, which fuels hopes that the Federal Reserve will hold its policy rate at the September meeting. Meanwhile, domestic factors are receiving a significant boost from the rapidly strengthening baht, supported by continued foreign inflows into the Thai bond market, with cumulative net purchases this month exceeding 9.2 billion baht. The baht recently touched 32.98 per US dollar. The research team has identified three main industry groups in Thailand that stand to benefit positively from the strong baht. The first group comprises large-cap stocks that are prime targets for foreign fund flows, including commercial banks such as KBANK, SCB, BBL, and KTB; retail and tourism plays like AOT, CPALL, and CRC; telecoms such as ADVANC and TRUE; and construction materials like SCC. The second group consists of companies with high foreign-currency debt or costs, including power and energy firms such as GULF, BGRIM, GPSC, and PTTEP, and airlines like AAV. The third group covers businesses that rely heavily on imported raw materials, including agriculture and food companies such as TFG and TVO. In addition, the research team recommends portfolio strategies to navigate volatility, highlighting safe-haven stocks combined with gold as a hedge, and names SYNTEC, PTT, and GUNKUL as top picks for the Thai stock market, along with LITE01 and ZIJIN80 for overseas investment.

Global Power Synergy, or GPSC, reported a first-half net profit of 3.538 billion baht, a 12% increase from the same period last year, supported by improved performance at its small power producer plants driven by higher electricity and steam demand from industrial customers, along with lower fuel costs and strong results from its hydropower plants in Laos, while financial costs declined. For the second quarter, net profit came in at 1.819 billion baht, up 6% from the previous quarter. The board approved an interim dividend of 0.55 baht per share, with a record date of 20 August 2026 and payment on 3 September 2026. At the end of the second quarter, the company had total commercial capacity of 7,256 megawatts and continues to expand its clean energy business to capture opportunities from the new power development plan.

Dao Securities maintains a positive view on GPSC following an analyst meeting, expecting third-quarter 2025 core profit to continue recovering, driven by GHECO-1 operating at full capacity for the entire quarter with improved efficiency, along with strong industrial user demand and lower financial costs. The firm keeps its 2025 and 2026 core profit forecasts at 6.9 billion baht and 7.1 billion baht, respectively, while reiterating a buy recommendation and a target price of 60 baht based on discounted cash flow. It sees the PDP2026 and opportunities from data centers in Thailand and India as long-term growth drivers.

Kingsford Securities expects the SET index to trade sideways today within a support level of 1,600 points and resistance at 1,620 to 1,630 points, awaiting the outcome of negotiations to open the Strait of Hormuz and supported by strong earnings from large listed companies. The brokerage recommends gradually accumulating Value and Defensive Play stocks, naming 10 securities: KBANK, KTB, GULF, GPSC, ADVANC, TRUE, CPALL, BH, BDMS, and BEM. For ADVICE, it recommends speculative buying with an IAA Consensus target price of 7.80 baht, expecting second-quarter 2026 profit to rise both quarter-on-quarter and year-on-year, driven by improving gross margins as IT product prices gradually increase, while robust sales of smartphones and other goods help offset the shortage of iPhones. The market forecasts 2026–2027 profit at 401 million baht, up 50% from the previous year, and 413 million baht, up 3% from the previous year. For AP, it recommends buying with an IAA Consensus target price of 9.74 baht, benefiting from the reduction of transfer and mortgage fees to 0.01% for residential properties priced up to 7 million baht, extended until 30 June 2027. It expects second-quarter 2026 pre-sales to grow both year-on-year and quarter-on-quarter, supported by low-rise projects and a low base last year due to the earthquake. The market forecasts 2026 net profit at 4.62 billion baht, up 7% from the previous year, and 2027 net profit at 4.92 billion baht, up 6% from the previous year, with a forward PE of 5.6 times, PBV of 0.5 times, and dividend yield of 6.5%.

Analysts are positive on GPSC after it reported second-quarter 2026 net profit of 1.819 billion baht, down 10 percent from a year earlier but up 6 percent from the previous quarter, supported by the full-quarter restart of the Gheco-One power plant and improved performance of associates. Krungsri Securities said normalised profit was 1.719 billion baht, up 59 percent year-on-year and 43 percent quarter-on-quarter, beating its research and market forecasts by 6 percent and 4 percent respectively. It raised its target price to 61 baht and named the stock a top pick in the power plant sector. Maybank Securities said core operating profit was about 1.6 billion baht, up 86 percent year-on-year and 21 percent quarter-on-quarter, and maintained a buy rating with a target price of 50 baht.

Krungsri Securities views Thai equities as having positive signals from Thailand becoming an AI investment hub and the Federal Reserve likely holding interest rates steady, setting an index target of 1,600 to 1,680 points and selecting eight standout stocks in banking, power plants, tourism, and other sectors. Mr. Korrapat Vorachet, Assistant Managing Director and Head of Research at Krungsri Securities, said Thailand is being seen as a new strategic location for AI infrastructure investment in the region, with advantages from sufficient reserve power generation capacity, competitive land costs, and utilities ready to support data centers. Meanwhile, the Fed may choose to patiently hold interest rates rather than hike aggressively amid fragile signals in the US labor market, which would be positive for Asian stock markets and value-market segments. The research team maintains its index target at 1,600 to 1,680 points, expecting the market to gradually recover and have a chance to revise earnings estimates upward after the second-quarter results pass. Recommended standout stocks include KBANK and KTB in the banking group, where prices are still below book value; GULF and GPSC in the power plant group to support electricity demand from data centers; PTT and SCC, which benefit from a new wave of investment; and AOT and BH in the tourism and healthcare group, helped by lower oil cost pressures and the return of Chinese tourists.

The Ministry of Commerce reported that the inflation rate for July 2026 rose 1.95% from the same period last year, which was lower than the market forecast of 2.52% to 2.60% and slowed from June. This came after oil prices declined and the government controlled refinery-gate prices, while ready-to-eat food prices continued to rise. Core inflation stood at 1.34%, and the average for the first seven months of the year was 0.87%. The Ministry of Commerce maintained its full-year inflation target range of 1.5% to 2.5%, expecting inflation to continue increasing in August. The lower-than-expected inflation figure adds weight to the Bank of Thailand keeping its policy rate at 1.0% through the end of the year, which is positive for financial and power plant stocks, with MTC, GULF, and GPSC recommended.

Krungsri Securities expects the SET Index to fluctuate upward today within a support range of 1,610 to 1,607 points and resistance at 1,631 to 1,645 points. The risk-asset investment climate is positive after the US Treasury Secretary forecast the Strait of Hormuz could reopen within two to three days, pushing the 10-year US Treasury yield down 7 basis points to 4.61 percent and Brent crude oil prices down to 78 to 80 US dollars per barrel. Domestically, July 2023 inflation data is due today, with core inflation expected to remain within the Bank of Thailand's target range, supporting the use of low interest rates to drive the economy, especially data center investments that are becoming clearer and not affecting existing projects. Krungsri highlights three investment themes: anti-commodity stocks, conflict-resolution stocks, and thematic investment stocks, with top picks being GULF, GPSC, and MTC.

Krungsri Securities expects the Thai stock market today to move in a sideways-up range, with resistance at 1,635 and 1,645 points and support at 1,613 and 1,608 points, after the war situation eased when President Trump announced the cancellation of a major attack plan. Meanwhile, OPEC+ increased production by 180,000 barrels per day, causing Brent crude oil prices this morning to drop to 83 to 85 US dollars per barrel, and the 10-year US Treasury yield fell by 5 basis points. On the domestic front, the government is pushing ahead with full-scale economic stimulus plans, setting up five committees to drive GDP growth of 3 percent per year, targeting an increase in the investment ratio to 30 percent of GDP within four years. It highlights three investment themes: investment-themed stocks, anti-commodity stocks, and stocks benefiting from easing tensions, with top picks being GULF, GPSC, and MTC.

Tisco Securities expects the power plant sector to report strong second-quarter 2025 results, with combined net profit of the companies under its coverage, excluding RATCH, estimated at approximately 15.7 billion baht, up 26 percent from the previous quarter but down 77 percent from the same period last year due to a high base that included extraordinary items from GULF's merger. GULF is expected to post the most outstanding profit growth from the prior quarter, with core profit forecast to rise 74 percent year-on-year, driven by dividends from KBANK, seasonally better performance at its IPP power plants, and the restart of the Jackson power plant in the United States. EGCO is forecast to report net profit of 841 million baht, down from both the previous quarter and the same period last year, weighed by weaker results at the Paju power plant in South Korea, the Yunlin wind farm in Taiwan, and projects in the United States, as well as the impact of a power purchase agreement change at the Quezon plant in the Philippines. GPSC's net profit is expected to increase 5 percent from the prior quarter but decline 11 percent year-on-year, supported by the restart of the GHECO-One plant, while its SPP business continues to face pressure from higher natural gas and coal costs. BGRIM is forecast to report net profit of 656 million baht, down from the previous quarter but up significantly from a year earlier, as it laps large foreign exchange losses, although pressure persists from rising natural gas costs and credit losses in Vietnam. Tisco maintains a positive view on the power plant sector, recommending a buy on GULF with a target price of 82 baht, EGCO with a target of 144 baht, and GPSC with a target of 51 baht, while recommending a hold on BGRIM with a target of 14.80 baht, and picks GULF as the top stock in the group.

Krungsri Securities expects the SET index to recover today, with resistance at 1,616 to 1,620 points and support at 1,587 to 1,584 points. The rebound is supported by the Dollar Index weakening to a one-month low, along with lower-than-expected US core PCE inflation and the first reading of second-quarter 2026 GDP, which are boosting sentiment in emerging stock markets. Investment momentum remains clear from both external and domestic sources. Recommended standout stocks include GULF, GPSC, and ADVANC.

Koraphat Vorachet, Assistant Managing Director and Head of Research at Krungsri Securities, said infrastructure, energy, and digital services stocks are likely to benefit significantly from the expansion of the data center business. GULF is the top large power plant stock to watch, given its capacity to meet rising electricity demand from data center investments, while GPSC and BGRIM are also interesting power plant plays. In digital services and cybersecurity, stocks to watch include BBIK, BE8, and SECURE. INSET is a key player in system integration and infrastructure construction for data centers. The cabinet has approved Thailand's first Big Data strategic plan, covering 2025 to 2027, aiming to develop the country's data infrastructure, promote AI adoption, and train at least 160,000 personnel by 2027, while targeting economic value from Big Data to grow by no less than 35 percent by 2027.

Pobchai Pattarawich, stock and derivatives market strategist at InnovestX Securities, said the Thai stock market is likely to move sideways down in a range of 1,630 to 1,650 points. Although tensions in the Middle East have started to ease, the market still faces pressure from DELTA's earnings and lower oil prices. DELTA's second-quarter 2026 results came in about 35 percent below analyst expectations due to higher raw material costs amid shortages of specialized chips and high-power electrical equipment. The analyst meeting and management's outlook will be closely watched, as they could lead to downward revisions of 2026 profit forecasts from the previous expectation of over 30 percent growth. Meanwhile, WTI crude oil prices fell around 5 to 6 percent, likely weighing on upstream energy stocks such as PTTEP, as well as refinery and petrochemical names like BCP, TOP, SPRC, PTTGC, and IVL. However, tourism, hotel, airline, power plant, and finance stocks may see buying interest from lower energy costs and declining bond yields. For short-term investment strategy, the firm recommends The Erawan Group, or ERW, expecting second-quarter 2026 profit to grow about 21 percent year-on-year, the strongest in its sector, and Global Power Synergy, or GPSC, which benefits from lower gas costs and bond yields, along with positive factors from the new power development plan, or PDP 2026, expected to be announced next month.

Dao Securities has a positive view on GPSC after visiting the GHECO1 and GLOW IPP power plants. It expects second-quarter 2026 core profit at 1.7 billion baht, up 8 percent from a year earlier and 45 percent from the previous quarter, supported by higher steam sales volumes, lower financial costs, and GHECO-One running at full capacity for the entire quarter after a maintenance shutdown. The broker maintains its 2026 and 2027 core profit forecasts at 6.9 and 7.1 billion baht respectively, while raising its 2026 target price to 60.00 baht from 47.00 baht based on discounted cash flow, to reflect long-term growth potential from the data center business and new projects under PDP2026. It keeps a buy recommendation.

Bualuang Securities expects the Stock Exchange of Thailand index to climb to 1,700 points by the end of 2026, supported by foreign fund inflows projected to reach 160 billion baht in net buying for the full year. This follows net purchases of around 70 billion baht since the start of the year, driven by strong earnings growth among listed companies, particularly in the energy and petrochemical sectors, and the appeal of high dividend yields in Thai equities. For the second half, the investment strategy focuses on selective stock picking in sectors with positive catalysts. These include power plant operators benefiting from green energy demand, with recommendations for GULF, GPSC, GUNKUL, and WHAUP. The electronics sector is recovering in line with global cycles and AI investment, with KCE as a top pick. Commercial banks offering high dividends are favored, with KBANK and KTB highlighted. Tourism and hotel stocks, where earnings have bottomed out, are represented by ERW and AWC. Consumer goods and food companies poised to gain from hotter weather include CBG and CPF. In portfolio allocation, Bualuang Securities advises investors who can tolerate risk to allocate 60 to 70 percent to equities, split into 30 percent Thai stocks and 70 percent foreign stocks, with the remainder in debt instruments and bonds, primarily focusing on Thai debt securities.

Krungsri Securities notes that the Energy Regulatory Commission has announced it will keep the electricity tariff for the September to December 2026 period at 3.95 baht per unit, based on a base tariff of 3.78 baht per unit and maintaining the fuel adjustment charge at 16.23 satang per unit, while using a surplus of 16 billion baht to help reduce electricity costs for the public. This is a short-term negative factor pressuring small power producer stocks such as BGRIM, GPSC, GULF, and WHAUP, as rising gas costs will impact margins and profits. However, the research team has already incorporated this impact into its estimates and views the share price decline as an accumulation opportunity. It maintains a positive long-term outlook driven by an expected surge in electricity demand from AI and data centers, along with the PDP 2026 plan, which will support capacity growth and create speculative interest for the power plant sector over the medium to long term. GULF and GPSC are selected as top picks in the group.

Krungsri Securities expects GPSC to report a core profit of 1.625 billion baht in the second quarter of 2026, up 50% from the same period last year and up 35% from the previous quarter. The main driver is an anticipated improvement in gross margin to 15.1%, after the GHECO-One power plant resumed full-quarter operations. This, together with a 15% year-on-year and 2% quarter-on-quarter increase in steam sales volume, helps offset the impact of higher natural gas costs. Share of profit from investments is likely to improve, supported by a recovery in the performance of the Xayaburi hydropower plant and the AEPL renewable energy project. The research team maintains a buy recommendation with a 2026 target price of 59 baht, based on a sum-of-the-parts valuation, and picks it as a top power stock thanks to its strong financial position. The interest-bearing debt-to-equity ratio is forecast at 0.9 times at end-2026, with additional investment headroom of around 200 billion baht to capture opportunities from the country's power development plan, or PDP26.

Krungsri Securities disclosed that the latest progress on the Thailand Individual Savings Account, or TISA, scheme is currently in the final stage of study and condition revision, with clarity expected by September. Meanwhile, the proposal to raise the investment ceiling for tax deductions is still under review for suitability. The research team assesses that the scheme will be positive for the Thai stock market due to long-term fund inflows, with every 10 billion baht of new money supporting the index by 25 to 30 points. This will benefit large-cap stocks in investment themes such as GULF, GPSC, KBANK, KTB, ADVANC, AMATA, and WHA, as well as service-sector stocks like BDMS, BH, and AOT. Additionally, the approval of the five-year national fisheries management plan will help reduce trade barrier risks and enhance ESG credibility, positively impacting seafood and food export stocks such as TU and ITC.

DBS Vickers Thailand says surging electricity demand in the United States from data centre businesses, to the point where some states risk insufficient generating capacity, could accelerate investment into Thailand. The grid operator for 14 central US states has warned it may need to implement rolling blackouts in some areas. DBS notes that data centre businesses consume roughly 10 times more electricity than typical industries, and several major US tech companies have already invested in Thailand, such as Microsoft with over 1 billion US dollars, Google Cloud with around 1 billion US dollars, and AWS with a long-term investment plan of about 5 billion US dollars. DBS estimates that additional investment from data centre and cloud providers would be positive for power plant stocks, including GULF, GPSC, and BGRIM, digital infrastructure plays like ADVANC and TRUE, as well as industrial estate groups such as AMATA and WHA.

Dao Securities assesses that the Thai stock index is likely to swing sideways in a narrow range near the short-term target of 1,630 to 1,650 points, amid global investor caution toward technology stocks and the still-sensitive war situation. The Thai market is supported by fund flows and higher crude oil prices, but caution is needed against profit-taking as it approaches resistance levels. On the domestic front, discussions between the prime minister and President Xi Jinping have led to the acceleration of the Thailand-China railway project and expanded cooperation in technology and AI, which is expected to support industrial estate and technology stocks. Meanwhile, the Ministry of Transport is pushing ahead with a common ticket policy for electric trains at 17 to 45 baht and studying congestion charges to subsidize mass transit systems. Overseas, the US stock market recovered on semiconductor stocks, but investors are still watching earnings from major technology companies. The Middle East situation remains tense even though Iran has signaled openness to diplomatic talks. The Chinese stock market rebounded after a national fund stepped in to buy and support the market, and authorities prepared to meet with financial institutions to restore confidence. The investment strategy focuses on Selective Buy, benefiting from fund flows and China-Thailand cooperation. Oil stocks such as PTTEP, TOP, and SPRC continue to benefit from US-Iran tensions, while stocks expected to gain from the World AI Conference include ADVANC, TRUE, INSET, AMATA, WHA, GULF, GPSC, DELTA, HANA, and KCE. The recommended portfolio adds MTC and OR, comprising MTC, OR, WHA, GULF, TOP, HMPRO, TRUE, CRC, PTTEP, and PTT, each at a 10% weighting.

Prime Minister Anutin Charnvirakul held talks with Huawei executives, with the company looking to expand its investment in AI and cloud in Thailand, building on cooperation in digital technology and workforce development. The government is ready to support Huawei as a technology partner to elevate Thailand towards an AI-driven economy. Earlier, Chinese Big Tech groups confirmed investment plans in Thailand worth over 70 billion baht this year in high-tech industries such as optical transceiver equipment for data centers, semiconductors, and expanding EV production capacity through the BOI's Thailand FastPass policy. Research views that the data center and digital economy theme in Thailand will continue to attract Chinese capital, a positive for industrial estate groups like WHA, AMATA, PIN, and S, as well as power plant groups such as GULF, GPSC, and GUNKUL.

Globlex Securities expects the Thai stock market this week to fluctuate in a range of 1,610 to 1,650 points, pressured by US chip stocks and tensions in the Middle East. The firm recommends investment strategies to capture the new Power Development Plan, or PDP, highlighting four standout power plant stocks: GULF, BGRIM, GPSC, and GUNKUL. These are poised to benefit from government energy policies aimed at positioning Thailand as a hub for future industries and driving toward the Net Zero target by 2050. On the domestic positive side, the Ministry of Commerce reported that new business registrations in the first half of the year expanded by 2.13 percent, with the online retail group surging 56.9 percent. Meanwhile, the Ministry of Finance is preparing to offer Savings Plus bonds worth 4 billion baht. Key external factors to watch include the US Federal Reserve meeting on July 28th and 29th, and the Monetary Policy Committee meeting number four of 2026 on August 26th.

Dao Securities assesses that 10 Thai stocks will benefit from China's artificial intelligence policy, following discussions between Thailand's prime minister and President Xi Jinping, during which China expressed readiness to support Thailand as a regional hub for electric vehicle manufacturing, artificial intelligence, and data centres. The stocks expected to gain include ADVANC, TRUE, INSET, AMATA, WHA, GULF, GPSC, DELTA, HANA, and KCE. Dao has added WHA, GULF, and TOP back into its recommended portfolio, amid an overall market roiled by Middle East tensions and a global sell-off in technology shares. However, energy stocks such as PTTEP and oil refineries continue to receive a boost from surging oil prices.

Dao Securities Thailand estimates the SET Index will trade in a range of 1,620 to 1,650 points this week, expecting volatility from heightened Middle East tensions after Iran's military launched attacks on US bases, pushing Brent crude oil prices above 90 US dollars per barrel for the first time since 11 June 2026. In terms of investment strategy, the firm recommends selective buying of stocks benefiting from the conflict and capital inflows. Top picks in the oil sector include PTTEP, TOP, and SPRC. Stocks expected to gain from the Thai prime minister's visit to China for discussions on AI and EV cooperation include ADVANC, TRUE, INSET, AMATA, WHA, GULF, GPSC, DELTA, HANA, and KCE. Dao Securities has adjusted its recommended portfolio, bringing WHA, GULF, and TOP back into the portfolio.