Sermsang Power Corporation Public Company Limited

Sermsang Power Corporation Public Company Limited, or SSP, reported first-half 2026 results with net profit attributable to shareholders of 325.1 million baht, up 44.8 percent from the same period last year, while core operating profit was 311.5 million baht, up 18.5 percent. For the second-half outlook, the company expects continued growth. The third quarter of 2026 will be supported by the high season for solar power generation in Japan, before wind power plants in Thailand and Vietnam enter their high generation season in the fourth quarter of 2026. SSP is also preparing to begin commercial operation of two community waste-to-energy plants in late 2026, which can generate and sell electricity around the clock while also earning revenue from waste disposal fees. The company aims to push total capacity to 720 megawatts by 2027, before increasing to 1,000 megawatts by 2032.

Sermsang Power Corporation Public Company Limited, or SSP, reported first-half 2026 results with net profit attributable to shareholders of 325.1 million baht, up 44.8 percent, and core operating profit of 311.5 million baht, up 18.5 percent compared with the same period last year. The company expects continued growth in the second half, driven by the high season for solar power plants in Japan in the third quarter and wind power plants in Thailand and Vietnam in the fourth quarter, as well as full-year revenue recognition from the LEO 2 power plant and completed efficiency improvements at the SPN power plant. The company is preparing to bid for renewable energy project quotas under the PDP 2026 plan and will begin commercial operation of two more community waste-to-energy plants by the end of this year, targeting total capacity of 720 megawatts in 2027 and 1,000 megawatts by 2032.

Three listed companies have disclosed continued growth prospects for the second half of 2026. TFG expects pig and chicken prices to have passed their lowest point, and its Thai Foods Fresh Market retail business has 748 branches, accelerating expansion to 875 branches by year-end, while investing in feed mills and farms in Vietnam. SSP posted first-half net profit of 325.1 million baht and electricity sales revenue of 1.5721 billion baht, and is preparing to sell power from two community waste-to-energy plants by year-end, with production capacity expected to more than double by 2028. DEMCO reported first-half net profit of 30.2 million baht, up 519.4 percent from the same period last year, with a backlog of 2.699 billion baht to be gradually recognised as revenue through 2028.

Asia Plus Securities maintains a Neutral weighting on the power plant sector, while naming GULF and GUNKUL as standout stocks set to benefit from the new national power development plan, or PDP2026, which could add around 20,000 megawatts of new capacity. The draft PDP2026 for 2026 to 2053, approved by the subcommittee yesterday, includes four scenarios, each with renewable energy accounting for more than 60 percent of generation and up to 80 percent. Small modular reactors, or SMRs, are set at roughly 2,400 to 4,000 megawatts, with some scenarios exceeding 4,000 megawatts, during the first ten years of the plan. The Electricity Generating Authority of Thailand will remain the lead agency to study and implement the initial phase before opening further investment to the private sector. The plan still targets an average electricity tariff of no more than 4 baht per unit throughout the period. Direct power purchase agreements may no longer be capped at 2,000 megawatts as in the previous framework, to accommodate continued growth in electricity demand from data centers and AI. Asia Plus Securities recommends buying GULF with a target price of 80 baht, expecting normalized profit in 2026 to grow about 32 percent to 38 billion baht. It also recommends buying GUNKUL, raising its 2027 target price to 6.40 baht from 5.60 baht, after first-half normalized profit of about 1 billion baht, up 15.4 percent from a year earlier. The broker raised its 2026 and 2027 profit forecasts by 13.3 percent and 14.6 percent respectively, to about 2.1 billion baht and 2.2 billion baht. SSP remains a buy with a target price of 5.60 baht, while EGCO is rated Trading with a target price of 135 baht.

Sermsang Power Corporation, or SSP, is preparing to begin commercial operation of two community waste-to-energy projects with combined capacity of 19.8 megawatts within the fourth quarter of 2026, marking the company's first such projects. The company expects these plants to have a higher capacity factor than solar farms and wind farms because they can run around the clock. Chief Executive Officer Varut Thammavaranukup said the company has projects in hand that will gradually begin commercial operation over the next three years totaling about 300 megawatts, which will more than double electricity output by 2028 from current levels. These projects come from solar and wind power both domestically and in two new overseas markets, the Philippines and Taiwan. SSP is also interested in joining the community solar programme of the Energy Regulatory Commission and aims to expand its investment portfolio to 1,000 megawatts.

Yuanta Securities stated that Sermsang Power Corporation Public Company Limited, or SSP, reported a net profit of 61 million baht for the second quarter of 2026, swinging to a profit compared with the same period last year, but down 77 percent from the previous quarter. Excluding extraordinary items, core profit was 60 million baht, down 76 percent from the previous quarter but up 78 percent from a year earlier, broadly in line with the broker's forecast. Core profit fell from the previous quarter because revenue from wind power plants declined to 223 million baht, as wind projects in Thailand and Vietnam entered their low season, and because of planned maintenance shutdowns at the UPT biomass power plant. Meanwhile, core profit grew from a year earlier, supported by higher revenue from the SPN solar project after solar panel replacement was completed in the fourth quarter of 2025, and by higher solar irradiance in Thailand, Vietnam and Indonesia. SSP will hold an Opportunity Day event on 20 August. The broker expects core profit in the third quarter of 2026 at 120 to 140 million baht, returning to growth both from the previous quarter and from a year earlier, driven by seasonal factors at solar power plants in Japan and wind power plants in Vietnam, higher revenue from the SPN project, revenue recognition from the Leo 2 project, and government support policies for solar rooftop. In addition, the sale of the 30-megawatt Yamaga project in Japan is expected to be completed and to deliver an extraordinary gain of around 500 million baht in the third quarter of 2026. The broker is reviewing its estimates and raising its target price to reflect the inclusion of the 150-megawatt Bago wind project and other projects in its forecasts. It sees scope for the share price to rise further over the medium to long term, supported by an earnings trend entering a new growth cycle in 2026, and expects two community waste-to-energy power plants with combined capacity of 17 megawatts in Thailand to achieve commercial operation as planned in the fourth quarter of 2026. SSP is also one of the key players in bidding for power plants under the new PDP plan, with progress expected by September 2026, including the 1,500-megawatt community solar scheme. The broker therefore maintains a buy recommendation.

Sermsang Power Corporation Public Company Limited, or SSP, reported net profit attributable to shareholders for the first half of 2026 at 325.1 million baht, up 44.8 percent from the same period last year. Core operating profit was 311.5 million baht, up 18.5 percent, while revenue from electricity sales was 1.5721 billion baht, up 5.9 percent. Growth was supported by a full quarter of revenue recognition from the LEO 2 solar power project in Japan and efficiency improvements at the SPN solar farm in Thailand. For the second half of 2026, the company is preparing to begin commercial operation of two community waste-to-energy power plants with combined capacity of 19.8 megawatts, which are expected to start selling electricity in the fourth quarter of 2026 and mark SSP's first investment in waste-to-energy power plants. Over the next three years, the company has around 300 megawatts of projects under development and preparing for gradual commercial operation, spanning solar and wind power, which are expected to help more than double electricity output by 2028. SSP is also moving forward with investment expansion into the Philippines and Taiwan, and is interested in participating in community solar projects in Thailand, supporting its goal of raising total power generation capacity to 1,000 megawatts in the future.

Sermsang Power Corporation Public Company Limited, or SSP, expects normalised profit in the third quarter of 2026 to rebound strongly both quarter-on-quarter and year-on-year. Preliminary estimates put normalised profit at 120 to 140 million baht, driven by seasonal factors at solar projects in Japan and wind projects in Vietnam, higher revenue from the SPN project after improved generation efficiency and a full quarter of operations, and revenue recognition from the 16-megawatt Leo 2 project in Japan, which began commercial operations in November 2025. In addition, the company is in talks to sell the 30-megawatt Yamaga solar project in Japan, a deal expected to close and generate an extraordinary gain of around 400 to 500 million baht within the third quarter of 2026. Yuanta Securities maintains its end-2026 target price of 4.80 baht per share and a buy recommendation, seeing room for the share price to rise over the medium to long term as earnings recover after the profit adjustment from the expiry of the Adder tariff in the first quarter of 2025. SSP is also a key player in the bidding for renewable power plants under the new PDP plan and the 1,500-megawatt community solar scheme, and it expects to achieve commercial operation for two domestic community waste-to-energy projects totalling 17 megawatts as planned in the fourth quarter of 2026.