ASPS: STPI shifts to digital and clean energy, recommends Buy

AnalystCorporate Action
โดย thunhoon.com·TH·Read original
Summary · why it matters

Asia Plus Securities (ASPS) stated that STP&I Public Company Limited (STPI) is transitioning from its contract manufacturing and industrial structure business to digital infrastructure and clean energy through a capital increase of 1,253 million baht to invest in data centers and renewable energy, which will serve as a new long-term growth engine. The 110MW data center project has received BOI promotion and has secured power, water, and fiber optic connectivity, with construction expected to begin in Q4/2026. Q3/2026 profit outlook is strong, despite the core business slowing due to fabrication revenue being in a transitional period before new work begins and electricity revenue being in its low season, but it will be supported by special gains of several hundred million baht from the sale of ST Evolution shares worth 518 million baht to a partner. Meanwhile, Q4/2026 results will recover with revenue recognition from new projects and share of profit from Monsoon entering its peak season. STPI's value will be increasingly driven by data centers and renewable energy, with the company holding a 26% stake in the data center project. Additionally, there is a 55MW solar farm project on Plu Ta Luang land to support the clean energy needs of the data center, as well as a 5.99MW waste-to-energy plant in Phetchaburi expected to achieve COD by year-end, receiving an adder of 3.50 baht per unit for 7 years. The Monsoon Expansion plan of 1,000MW is also a long-term growth driver. Another key strength is the hidden asset from 937 rai of Plu Ta Luang land, which has a book value of only 320 million baht (0.34 million baht per rai) compared to a market price of around 2.8 million baht per rai, making the total land value potentially over 2.6 billion baht. The company also plans to sell about 100 rai of land for data center development, which will unlock asset value and support investment in new businesses. The current share price is trading below the capital increase price of 5.55 baht, limiting downside risk. The recommendation is "Buy" with a target price of 7.55 baht, based on the Adjusted Book Value method by adjusting the Plu Ta Luang land value to market price, which does not yet include the added value from data centers and the new energy portfolio.

Impact on stocks 2

Energy Transition & Power Demand▲ · 1 stocks
Financials▲ · 1 stocks

Theme Impact 3

Off-coverage companies 1

Monsoon Wind Power Company LimitedPrivate▲ Positive
Demandrelevance

Monsoon's expansion plan and peak season profit share are growth drivers.

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