Analyst Expects GPSC 2Q Profit to Soar 53%, Recomm. “BUY” with a TP at ฿80

Analyst expected Global Power Synergy Public Company Limited (GPSC) to post a 2Q20 core profit of 1,661 million baht (+53.65% YoY), supporting by lower gas price and higher revenue from renewable power plant. Analyst has given “BUY” recommendation with a target price of ฿80/share.

 

Phillip Securities (Thailand) has assessed that GPSC financial performance would continue posting growth in 2Q20 when compared to a year earlier, expecting 2Q20 profit of 1,661 million baht, a 53.65% increase YoY and would gain a higher revenue from a recently acquired of renewable power plant. The decline in price of natural gas is also an importance factor for earnings increased. 

 

Operating expense decreased from a year earlier after fully completed the acquisition of GLOW. Overall normal profit, Phillip saw a solid growth of 97% YoY, but foresaw a 10% down of income due to a lower share profit of IPP in the line with contract. 

 

While maintain its view on GPSC 2020 core profit improvement YoY would be due to 100% consolidation of GLOW and expected GPSC to further grow in 2020 – 2021.