Thai power plant stocks rally, GULF GPSC buoyed by expected new PDP rules

KEY POINTS

Six power plant stocks rose in early trading, GULF up 2.44%, GPSC up 2.27%.
Key positive comes from lower crude oil prices, easing energy cost pressure for power companies.
Investors expect the new version of the Power Development Plan (PDP) to be announced soon, possibly bringing new project bidding opportunities.
Falling bond yields also support the sector, lowering financing costs and enhancing stock valuation appeal.

Early trading performance (July 2, 2026)

Power plant sector strong in early trading, including: GULF up 2.44% to 63.00 baht (+1.50 baht); GPSC up 2.27% to 45.00 baht (+1.00 baht); BGRIM up 1.18% to 17.10 baht (+0.20 baht); GUNKUL up 0.94% to 4.30 baht (+0.04 baht); EGCO up 0.84% to 120.00 baht (+1.00 baht); TPIPP up 0.57% to 1.76 baht (+0.01 baht).

6 power plant stocks up, GULF-GPSC lead 2.44%, benefiting from oil decline - anticipating new PDP round

Positive factors: Oil price decline and bond yield drop

Analysts point out that the power plant sector was supported by external and domestic factors in early trading. In particular, the sustained decline in crude oil prices helps reduce energy cost pressure and creates a more positive market atmosphere for the utility sector; although the baht remains weak, there is clear buying interest in the sector.

In addition, bond yields have also fallen. For cash flow-stable, longer-term power plant businesses, lower interest rates usually help reduce financing costs and enhance stock valuation appeal relative to other assets, leading to clearer capital inflows.

New PDP expectations: opportunities for large companies and project bidding

Beyond external factors, domestic positives come from progress on the new version of the Power Development Plan (PDP). The market expects the government to soon announce details of the new PDP.

Therefore, investors may begin to position and trade ahead, as the new PDP will determine the country's future energy investment direction and create bidding opportunities for various types of power projects, including renewables and base-load plants. Large companies are seen as most likely to benefit from the new PDP due to their financial strength, investment capacity, and experience in developing and operating large projects; they have a higher chance of winning bids for new projects, which could drive future capacity and revenue growth.

Given the positive factors, the market maintains a positive view on the power plant sector and recommends a "buy" rating, with stock picks including GULF (target 70 baht) and GPSC (target 55.30 baht). Investors are advised to closely monitor details of the new PDP, such as capacity mix, fuel types, and conditions for opening new project bidding, as these will affect each company's growth opportunities and fundamental value.