Global Power Synergy Company Ltd

GPSC: Improving Earnings Performance from Tariff Adjustment

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298 Views, 20 May 2022 12:11
EXECUTIVE SUMMARY
  • We maintain the HOLD rating based on a target price of Bt69.0,derived using DCF methodology (WACC 5.7% and TG 1%),implying 32x PE’23E.Our valuation reflects weak SPP operations outlook in 2022
  • Expect the 2Q22 earnings to improve QoQ,from 1) better SPP margin backed by upward Ft adjustment 2) Full quarter profit recognition from GE phase 5 after maintenance shut down (3Q21-1Q22)
  • Full year 2022 outlook remains weak, as we expect the EPS to shrink by 37%.YoY due to continued pressure on SPP margins from high fuel cost. We are more positive 
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Pi Securities PCL, Thailand
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