RATCH Plans a ฿15Bn Investment for Capacity Expansion, Analyst Recomm. “BUY” at ฿70.5

Mr. Kijja Sripathangkura, Chief Executive Officer of Ratch Group Public Company Limited (RATCH), revealed that the 214.2MW Yandin Wind Farm project in the Commonwealth of Australia on March 19, 2021 has achieved Interim Approval from the grid connection authority and entered commercial operation at full capacity, while remaining commissioning certifications continue to be completed.

 

The project has a 15-year Power Purchase Agreement with Alinta Sales Pty Ltd., a subsidiary of Alinta Energy Pty Ltd., for 100% of electricity generated, associated green products and capacity credits. 

 

RATCH acquired 70% of the project through RATCH-Australia Corporation Pty Ltd. (RATCH’s wholly owned indirect subsidiary), while Renewable Energy Investment Fund (an Alinta Subsidiary) retains a 30% interest.

 

Mr. Kijja has said before that this year (2021) RATCH will start to recognize income from 4 power plant projects that have already commenced the COD with a combined installed capacity according to the shared ownership of 537.04MW comprisong of 1) Yandin Wind Farm, 2) Collector Wind-Turbine Power Plant, 3) Riau Power Plant in Indonesia, and 4) Thanh Phong Wind Power in Vietnam. 

 

For the year 2021, the company plans to increase production capacity by 700MW from the current capacity of 8,174MW, and also set aside 15 billion baht for investment. If RATCH is able to achieve its target, the production capacity will increase to 8,874MW.

 

Country Group Securities (CGS) has given a “BUY” recommendation on RATCH with a target price of ฿70.50/share, expecting 1Q21 to grow YoY from a full-quarter revenue recognition of ABEIF project in Vietnam, along with an improving IPP operations. Overall, CGS maintained a positive view towards RATCH through 2025.