RATCH Targets to Achieve 245MW M&A in 2021, Analyst Recomm. “BUY” at ฿62.25

RATCH expected its M&A deal for the power plant in 2021 at a total of 245MW, while projecting to increase the production capacity of renewable energy by 350MW from the total budget of 10-15 billion baht. 

 

Chief Executive Officer of Ratch Group Public Company Limited (RATCH), Mr. Kijja Sripatthangkura, revealed that RATCH expected more M&A deals for the power plant in 2021, targeting an additional 700MW to the company’s portfolio.

 

At present, RATCH is under discussion for several M&A deals, regarding the initial plan, RATCH expects to add a total of 595MW to the production capacity from an investment expansion in renewable energy projects and an additional M&A.

 

For the investment plan, RATCH will expand the investment domestically and internationally, but would focus on the countries that RATCH has already established, particularly ASEAN countries. However, RATCH is still seeking an investment opportunity in Taiwan, Republic of Korea and Australia. Moreover, RATCH has set aside a budget of 10-15 billion baht for new projects in 2021.

 

Mr. Kijja also stated that full year earnings of 2021 still remain positive with an upside potential. RATCH expected to commence the COD in the total amount of 376MW this year, consisting of the Collector wind farm project in Australia, the Thanh Phong wind farm in Vietnam and the Riau gas power plant in Indonesia. 

 

KGI Securities has rated RATCH an “Outperform” with a target price of ฿62.25/share, and also raising RATCH as the Power sector’s top pick due to dividend yield.