Why are power plant stocks a good choice for safe investors

If you are looking for steady returns with less worry, power plant stocks should be considered as a viable option. Since electricity is an essential commodity that humans need in daily life, the demand for electricity remains stable and grows steadily in line with economic and population growth.

Understand the Power Plant Business Structure Deeply

When investing in power stocks, investors should understand what factors influence this business.

Management and expansion strategy factors are the first to consider. Leading power companies typically plan to expand capacity through new projects or seek joint ventures domestically and internationally. Such expansion impacts long-term profit growth.

Government policies and development plans play a crucial role in industry direction. Under the Power Development Plan (PDP) and Renewable Energy Development Plan (AEDP), the government sets the country’s electricity generation trajectory, directly affecting private sector investment opportunities.

Power purchase agreements are another important variable. Studying contract details—such as duration, quality rates, and revenue recognition methods—helps accurately assess financial statistics.

Types of Power Plants You Should Know

In the energy landscape, solar power (Solar Power Stocks) has gained popularity due to its environmental friendliness and future profit potential. Hydropower (Hydropower) remains a stable choice in water-abundant areas.

Additionally, there are:

• Natural gas power plants, considered clean and efficient energy sources.
• Nuclear power plants, which have potential but involve policy complexities and risks.
• Other renewable energies such as wind, biomass, and wave energy, which are continuously developing.

Overview of 8 Power Stocks Comparison

Detailed Study of Main Investment Options

BANPU: Leading Energy Company in the Asia-Pacific Region

Banpu Power is a global quality energy producer with 41 projects across 8 countries: Thailand, Laos, China, Japan, Vietnam, Indonesia, Australia, and the USA. Currently, BANPU has a capacity of 3,656 MW, with renewable energy accounting for 11.20% of its energy mix. In the last 6 months, the company recorded revenue of 90,673.73 million THB and net profit of 2,488.71 million THB. The current stock price is 111.50 THB, with a YTD movement of -5.88%.

GULF: Pioneer of Integrated Energy

Gulf Energy is a major player in Thailand’s industry, operating extensively in power generation, gas, renewable energy, infrastructure, and utilities. Its most recent outstanding achievement is a net profit of 8,239.79 million THB from revenue of 64,896.44 million THB. With a stock price of 66.50 THB, its YTD increase is +54.49%, indicating strong market confidence. The company recently announced a 90,000 million THB investment in renewable energy as part of its new capacity development plan and plans to establish NewCo for future mergers.

GPSC: Innovation and Sustainability Globally

Global Power Synergy (GPSC) positions itself as a leader in innovation and long-term possibilities. Its core business involves the production and sale of electricity, steam, and other utilities. In the past 6 months, GPSC reported revenue of 48,426.98 million THB and net profit of 2,292.55 million THB. The stock price is 46.25 THB, with a YTD of -3.09%. Recently, the company secured a long-term loan of 7,000 million THB from major financial institutions, supporting clean energy projects and helping achieve the country’s Net Zero goals.

BGRIM: Diverse Business Sectors

B.Grimm Power focuses on electricity generation from combined heat and renewable energy sources. The company has expanded into health, lifestyle, real estate, and digital technology. In the last 6 months, BGRIM recorded revenue of 28,344.78 million THB and net profit of 607.17 million THB. Its stock price is 23.40 THB, with a YTD of -12.66%. A key driver is the signing of solar power purchase agreements with government agencies, expanding project portfolios and creating new revenue streams.

EA: Developing Clean Energy and Power Transportation

Pure Energy (EA) applies innovation and technology in renewable energy, storage systems, and electric vehicles. In 6 months, EA reported revenue of 10,368.81 million THB and net profit of 1,430.44 million THB. The stock price is 7.80 THB, with a YTD of -81.36%, reflecting high volatility. This year, EA is driving electric pickup trucks made in Thailand to meet market demand and promote environmental friendliness simultaneously.

SSP: Pioneering Domestic Renewable Energy

Siam Solar Power (SSP) is another company expected to grow rapidly in the new energy economy. It focuses on renewable energy, solar farms, and rooftop solar projects. In 6 months, revenue was 1,709.90 million THB with net profit of 326.89 million THB. The stock price is 5.90 THB, with a YTD of -25.62%. Credit rating agency TRIS has reaffirmed SSP’s “BBB+” rating. The company’s diversified renewable energy expansion plans align with market trends.

CKP: From Construction to Energy

CK Power originated from a construction contractor but has fully invested in power generation projects, including hydro, cogeneration, and solar. It recorded revenue of 5,111.09 million THB but a net loss of -387.05 million THB. The stock price is 3.70 THB, with a YTD increase of +19.02%, indicating market adjustment to address previous losses.

GUNKUL: Peer-to-Peer Energy Platform

Gunkul Engineering’s valuation exceeds 30,000 million THB from an initial capital of only 1 million THB. It produces and sells renewable energy to both government and private sectors. In 6 months, revenue was 5,002.69 million THB with net profit of 761.43 million THB. The stock price is 2.80 THB, with a YTD of +2.86%. Notably, Gunkul developed the Peer-to-Peer Energy Trading Platform, which will serve as a B2C marketplace with 9-10 additional energy products in the future.

Main Reasons to Consider Power Plant Stocks

Stable returns due to increasing electricity demand aligned with economic and population growth. Power plant businesses tend to generate consistent profits, often higher than traditional bank deposits.

Continuous demand for electricity from government, private sector, and households ensures market growth opportunities.

Expansion potential allows companies to develop new projects or increase capacity to meet rising demand, leading to higher profits over the long term.

Positive government policies may include incentives or investment promotion privileges to support energy development nationally.

How to Invest in Power Stocks

For Thai stock market stocks like GULF and BGRIM, open an account with a Thai broker such as Bualuang, Kasikorn, or Maybank Kim Eng. Conditions and fees vary by broker. Popular trading platforms include STREAMINGPRO and ASPEN.

Minimum purchase is 100 shares. For example, buying 100 GULF shares at 66.50 THB requires 6,650 THB. If the price rises to 70 THB, profit is 350 THB.

Alternative option is trading via foreign brokers using CFD (Contract for Difference), offering advantages like two-way trading, leverage, and a variety of instruments.

Summary

Power plant stocks are considered “safe stocks” or defensive stocks because electricity is essential. The stability of energy supply is crucial for the country. For investors seeking diversification or with limited risk appetite, investing in this group is a prudent and potentially rewarding choice.