CGS International (Thailand) or CGSI has maintained a "Buy" recommendation on CKP or CK Power Public Company Limited with a target price of 3.30 baht, expecting Q3/69 profit to grow quarter-on-quarter and be the strongest performance this year. This is due to the peak production season for hydropower plants, with no maintenance shutdowns at some plants as seen in the first half, lower exchange rate volatility than Q2/69, reduced maintenance expenses and financial costs of subsidiaries, and increased electricity demand from industrial customers. In particular, Nam Ngum 2 or NN2 and Xayaburi or XPCL will enter their peak production period, with water inflow and reservoir levels close to the 10-year average, and are expected to run at full capacity. Meanwhile, Bang Pa-in Cogeneration (BIC, unlisted) will see improved performance after major maintenance was completed in Q1/69, and gradual debt repayment will reduce interest burden, which should offset higher financial costs from the issuance of 5 billion baht in debentures in April 2026. However, risks from the El Nino phenomenon should be closely monitored until 2027.
CK Power Public Company LimitedCGSI maintains Buy with 3.30 baht target, expecting Q3/69 profit to grow QoQ and be the strongest this year on hydropower peak season and lower costs.
