2024 Invest in Energy Stocks or Power Plant Stocks? The Top 8 Promising Options

When it comes to building a stable investment portfolio, many investors look for stocks that offer consistent returns and low risk. The power generation stocks group, especially power plant companies, has become a popular choice because electricity is an essential commodity that cannot be missing, whether in factories, shops, or households. Demand remains steady and is expected to increase.

Why do power plant stocks attract investors?

These stocks have special characteristics known as “defensive stocks,” which means:

• Steady income due to continuous electricity demand throughout the year
• Predictable profits with reasonable accuracy
• Suitable for investors seeking to reduce risk

However, over the past 6 months, the Thai electricity market has experienced significant changes due to new energy policies and the transition to clean energy.

Types of power generation stocks: Which one to choose?

Energy stocks can be classified based on their energy sources as follows:

• Solar Power: The fastest-growing innovation to reduce reliance on fossil fuels
• Hydropower: Well-known projects in Thailand with stable output
• Natural Gas: An efficient method of electricity production with low emissions
• Other Renewable Energy: Wind, biomass, and ocean waves as backup options

8 standout power plant stocks

Performance comparison over the last 6 months

1. BANPU: Market leader in capacity

Banpu Power is a giant in Thailand’s energy industry, operating 41 projects across eight countries including Thailand, Laos, China, Japan, and Australia.

Key information:

• Current price: 111.50 Baht
• 6-month revenue: 90,673.73 million Baht
• Capacity proportion: 3,656 MW
• YTD: -5.88%

Although renewable energy capacity is still at 11.20%, this company remains a top-tier public portfolio.

2. GULF: The best performer this half-year

Gulf Energy Development presents a different story. This company not only produces electricity but also operates in gas, real estate, and renewables.

Highlights:

• Current price: 66.50 Baht
• 6-month revenue: 64,896.44 million Baht
• Net profit: 8,239.79 million Baht (highest in the table!)
• YTD: +54.49% (one of the strongest rising stocks)

Recently, GULF announced large renewable energy investments under the new PDP plan and established NewCo to evaluate acquisitions within the energy sector.

3. GPSC: Environmental consulting leader

Global Power Synergy is renowned for its 4S management and sustainable energy production.

Details:

• Current price: 46.25 Baht
• 6-month revenue: 48,426.98 million Baht
• YTD: -3.09%

Recently, it secured a 7-billion Baht loan from three financial institutions to accelerate clean energy projects and support Net Zero goals.

4. BGRIM: A diverse energy creator

B.Grimm Power has expanded into other sectors beyond energy, such as healthcare, lifestyle, and digital.

Current status:

• Current price: 23.40 Baht
• 6-month revenue: 28,344.78 million Baht
• YTD: -12.66%

Recently, it signed a power purchase agreement for solar energy with the government, indicating BGRIM’s entry into the clean energy arena.

5. EA: An innovative energy company

Pure Energy is transforming the industry with innovations like electric vehicles, electric boats, and Li-ion batteries.

Details:

• Current price: 7.80 Baht
• 6-month revenue: 10,368.81 million Baht
• YTD: -81.36% (largest decline in the table)

Despite a significant drop this year, the company continues to develop electric pickup trucks, targeting the commercial vehicle market.

6. SSP: A natural star

Sriracha Power Corporation focuses entirely on renewable energy, aiming to expand assets beyond 30,000 million Baht across Asia.

Details:

• Current price: 5.90 Baht
• 6-month revenue: 1,709.90 million Baht
• YTD: -25.62%

Analysts forecast the stock price could rise to 8.90 Baht, an increase of approximately 50.85%.

7. CKP: A construction company with energy

CK Power (Ch. Ch. Engineering) is known in the construction industry but has now entered serious power generation with hydropower, cogeneration, and solar farm projects.

Statistics:

• Current price: 3.70 Baht
• 6-month revenue: 5,111.09 million Baht
• Net profit: -387.05 million Baht (loss)
• YTD: +19.02% (fluctuations stable)

8. GUNKUL: Peer-to-Peer Energy Trading innovator

Gunkul Engineering’s growth story started with a registered capital of 1 million Baht and has now become a conglomerate worth over 30 billion Baht.

Latest data:

• Current price: 2.80 Baht
• 6-month revenue: 5,002.69 million Baht
• YTD: +2.86%

GUNKUL’s innovation is the Volt platform, a Peer-to-Peer Energy Trading system that will change how energy is consumed. In the future, this platform will add 9-10 new energy products.

The importance of further study: Factors affecting energy stock prices

1. Government policies

The management of power plant stocks depends on the country’s power development plan (PDP) and renewable energy plan (AEDP). Successful implementation of these plans will determine the future direction of the business.

2. Power purchase agreements

Studying contracts between power plants and buyers helps assess revenue stability.

3. Management efficiency and expansion strategies

Companies with expansion plans may achieve long-term growth.

How to start investing in energy stocks

For Thai market stocks

Open an account with a stock broker such as Bualuang Securities or Kasikorn Securities, using trading programs like Spot or Aspen. The minimum purchase is 100 shares. For example, buying 100 GULF shares at 66.50 Baht requires 6,650 Baht.

For CFD (Contract for Difference)

Some international brokers offer CFD trading of stocks, which has advantages:

• Can trade both up and down
• Use leverage to control large quantities with less capital
• Wide range of available products

Summary: Why consider energy stocks?

Power plant stocks are a top choice for cautious investors because:

• Electricity demand is steady and increasing
• Transitioning to clean energy opens new investment opportunities
• These companies are often backed by government support, increasing stability

For Thai investors, choosing GULF, GPSC, or BANPU is suitable for those with sufficient capital, while SSP, EA, or GUNKUL may appeal to those seeking high growth potential but willing to accept higher risks.