Which electric utility stock to choose? Start with these 8 popular electric utility stocks.

Looking for a stable investment? Electricity stocks might be your answer. These stocks are called “defensive stocks” because electricity is a necessity of life, with steady demand regardless of economic conditions. Let’s take a look at which electricity stocks are worth paying attention to today.

Why do electricity stocks always attract investors?

Stable and secure income

Electricity companies sign long-term power purchase agreements with the government, which means their income sources are relatively fixed. As long as the agreements are in place, revenue keeps coming in. This stability is especially attractive to investors seeking cash flow.

Growth potential remains broad

With industrial development and increasing residential electricity demand, power supply must continually expand. This provides opportunities for electricity companies to increase capacity and launch new projects, leading to profit growth.

Aligns with national energy policies

Thailand’s electricity development plan (PDP) and renewable energy development plan (AEDP) guide the direction for power companies. Those actively investing in renewable energy are more likely to receive policy support and financing incentives.

Beneficiaries of green transformation

More and more electricity companies are shifting toward solar, wind, and other clean energy sources, which not only aligns with global trends but also gains investor recognition. These companies are expected to see a growth surge in the next 10 years.

Practical comparison of 8 electricity stocks: who is most worth buying?

Breakdown: Investment logic of 8 electricity companies

BANPU: Regional power leader, stable but cooling off

Banpu Power has the broadest footprint in Asia-Pacific, operating 41 power plants in 8 countries with a capacity of 3,656 MW. Half-year revenue exceeds 90 billion, with nearly 2.5 billion profit, making it the highest revenue earner on this list.

However, this year’s performance has been lackluster, with a 5.88% drop in stock price, possibly reflecting market concerns over traditional thermal power. But long-term, its international expansion and capacity scale remain core advantages.

Analyst forecast: Highest at 111.50 Baht, with a stable lower range.

GULF: Biggest winner this year, up over 50%

This is the standout performer this year, with a 54.49% surge. Gulf Energy achieved half-year revenue of 64.8 billion Baht and net profit of 8.2 billion Baht—top-tier profit margins among power stocks.

The company recently announced a 90 billion Baht investment to promote renewable energy projects and plans to acquire shares in other energy companies (ADVANCE and THCOM). These moves indicate management’s strong confidence in green energy prospects.

Analyst forecast: Upside to 68 Baht, support at 49 Baht.

GPSC: Pioneer in clean energy transition

Global Power received a 7 billion Baht long-term loan to advance clean energy projects and achieve “net zero” goals. The company places great importance on responding to national energy policies.

Half-year revenue of 48.4 billion Baht, with a profit of only 2.3 billion Baht (relatively low profit margin), but its commitment to investing in clean energy is firm. If projects proceed smoothly, profits could improve significantly.

Analyst forecast: Target price around 61 Baht, supported by fundamentals at 43.50 Baht.

BGRIM: Diversification in transition

B.Grimm Power is not only in power generation but also ventures into health, real estate, and digital tech. This diversification carries risks but also opportunities.

Recently signed solar power purchase agreements with the government, showing active renewable energy deployment. Half-year revenue of 28.3 billion Baht and profit of 600 million Baht. The 12.66% decline in stock price may reflect market concerns over diversification strategy.

Analyst forecast: Technical target at 31 Baht, support at 19.60 Baht.

EA: Double bet on EVs and energy

Absolute Energy’s story is more complex—it not only sells electricity but also ventures into electric vehicles, charging stations, and batteries. It’s a comprehensive “energy + future mobility” gamble.

Half-year revenue of 10.3 billion Baht, profit of 1.4 billion Baht, with a decent profit margin. But the stock has plummeted 81% this year, reflecting investor worries about its aggressive expansion strategy. Whether it can deliver remains to be seen.

Analyst forecast: Pessimistic scenario at 5 Baht, optimistic at 35 Baht, a huge valuation gap indicating high uncertainty.

SSP: Small but promising renewable energy player

Solar Power focuses on solar and rooftop PV projects, aiming to expand assets to 30 billion Baht in 2024. This focused strategy and clear growth path are recognized by credit rating agencies (BBB+).

Half-year revenue is only 1.7 billion Baht (smallest scale), with a profit of 300 million Baht. Despite a 25% decline this year, analysts are optimistic, expecting over 50% upside potential.

Analyst forecast: Upside to 8.90 Baht, nearly 51% increase from current levels.

CKP: Turning around from losses

C.P. Power relies on a well-known construction contractor, now mainly operating hydro, combined cycle, and solar plants. Half-year revenue of 5.1 billion Baht but a loss of 387 million Baht—this is the only loss-making company on the list.

Interestingly, its stock rose 19% against the trend, possibly betting on a turnaround. But currently, it’s the riskiest option on this list.

Analyst forecast: Target at 5.20 Baht (currently trading at a 40% premium), but close monitoring of financial recovery is needed.

GUNKUL: Innovator in P2P energy trading

Gunkul Energy started with 1 million Baht, now holding assets over 3 trillion Baht. Its core strength is developing peer-to-peer energy trading platforms—an innovative approach rarely seen.

Half-year revenue of 5 billion Baht, profit of 760 million Baht, with a good profit margin. The company plans to launch 9-10 new energy products, trying to shift from B2B to B2C consumer markets.

Analyst forecast: Upside potential of 5 Baht, current price at a relatively low level.

Characteristics of different types of electricity stocks

Solar stocks

Examples: Solar parts of SSP, BGRIM

Features: High initial investment, low maintenance costs, low pollution. Heavily supported by policies.

Risks: Weather variability affects output; long-term agreements needed to secure income.

Hydropower stocks

Example: CKP

Features: Stable capacity, low costs, but limited by geography. Limited expansion potential.

Risks: Insufficient rainfall can severely impact capacity.

Natural gas power stocks

Examples: GULF, GPSC

Features: Cleaner than coal and renewable sources, transitional energy. High efficiency, quick to build.

Risks: Volatility in natural gas prices can squeeze margins.

Integrated energy stocks

Example: BANPU

Features: Diversified products, risk spreading, strong resilience.

Risks: Heavy reliance on traditional energy, facing long-term green transition pressures.

How to get started with electricity stocks?

Route 1: Direct purchase on local stock market

If you want to buy GULF, BGRIM, or similar Thai-listed electricity stocks, you need to:

1. Open a stock account: Choose a local broker (such as Siam Securities, Kasikorn Securities, etc.)
2. Minimum investment: Usually starting from 100 shares
3. Example: Buy 100 shares of GULF at 66.50 Baht each, total 6,650 Baht
4. Trading tools: StreamingPro or ASPEN are common trading platforms for local investors

Route 2: International platform CFD trading

If you prefer less hassle, you can also trade via international brokers using CFD (contracts for difference):

Advantages:

• Two-way trading, profit from falling prices too
• Leverage available, small capital can control large positions
• Wide range of assets, including stocks, gold, forex
• Fast account setup, low minimum investment (starting at $50)

Disadvantages:

• Higher risk, leverage is a double-edged sword
• Requires constant monitoring of positions

3 questions to ask before investing

1. How stable are this company’s power purchase agreements? The longer and more stable the agreements, the more predictable the cash flow. Short-term or no long-term agreements mean higher risk.

2. How much is the company investing in renewable energy? The industry is shifting toward green energy; companies keeping pace have better prospects. GULF, GPSC, SSP have clearer strategies than BANPU.

3. How is the balance between profit margins and capital expenditure? High profit margins indicate operational efficiency (like GULF), but also consider whether the company has enough capacity to invest in new projects.

Summary

Electricity stocks are indeed good choices for “defensive” investments because the stability of electricity demand provides a safety margin. But not all are equal—some companies (GULF, SSP) are actively embracing the green energy wave, while others (BANPU) are still relying on old strengths.

The smartest approach is:

• Aggressive: Choose GULF or SSP, which are most active in renewable energy deployment
• Conservative: Choose BANPU or GPSC, with solid fundamentals but slower transition
• Long-term: Diversify into 2-3 companies to enjoy industry benefits and hedge risks of individual stocks

Remember, all investments carry risks. Before acting, do thorough research on long-term agreements, financial health, and strategic direction of the companies.