Equity Analysis /
Thailand

Gulf Energy Development PCL: Now an integrated infrastructure play!

  • Continuing with energy infrastructure biz expansion

  • Logistics infrastructure biz will play a big role in long-term

  • INTUCH acquisition—securing a digital infrastructure biz

Bualuang Securities
19 August 2021

The key messages from our virtual roadshow for domestic investors and from GULF’s post-INTUCH tender offer conference call last week reaffirmed our bullish view. The firm is transforming into an integrated infrastructure giant—energy, logistics, and digital. GULF’s scope for long-term growth should continue to generate positive market sentiment and a higher stock price going forward.

Continuing with energy infrastructure biz expansion

Energy infrastructure is GULF’s focus. It will continue expanding its power generating biz, mainly renewables, in tandem with the global trend and Thailand’s long-term energy target. The firm is studying the feasibility of investing in many projects (greenfield, brownfield, and operating assets), such as offshore wind farms in Europe and Vietnam. Also, EPPO is revising PDP2018; the revision may open scope for huge investments in renewables in Thailand. As GULF has completed its tender offer for INTUCH, we think it has sufficient available resources to study the feasibility of (and execute) new investments, so we expect it to announce some big deals during the next six months.