Ratch Group PCL: Decent yield amid flat earnings

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Ratch Group PCL: Decent yield amid flat earnings

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Ratch Group PCL

Decent yield amid flat earnings

Reiterate Rating: NEUTRAL | PO: 36.00 THB | Price: 35.25 THB

Earnings and PO fine-tuned; Reiterate Neutral 07 July 2026

We fine-tune our earnings estimates on RATCH and expect the company's NPAT to be Equity

maintained at around Bt6.7bn for 2026-2028E. However, we raise our PO from Bt30.5

to Bt36 as we (1) change our valuation methodology from the average between DCF and

Key Changestarget yield to pure DCF (in line with other utility stocks) and (2) update Rf (from 3% to

2.5%) and Rp (from 8% to 7.5%) used in the DCF valuation to be in line with our house (Bt) Previous Current

view. We reiterate our Neutral rating on the company. Although the company's NPAT Price Obj. 30.50 36.00

may look less attractive compared to our top pick, GULF, RATCH’s decent yield should be 2026E Rev (m) 33,640.6 27,928.5

a good cushion for the share price. 2027E Rev (m) 33,651.0 27,938.8

2028E Rev (m) NA 17,190.9

2026E EPS 3.34 3.10Yield still attractive

We expect the company to pay 2026-2028E dividend of Bt1.6, flat YoY, in line with its 2027E EPS 3.37 3.06

NPAT profile. The current yield of 5.2% is 50bp above the company's 15-year historical 2028E EPS NA 2.11

average of 4.7% and is higher than the sector average of 3.7%.

Sirichai Chalokepunrat ^^^

Positioning for IPP bidding ResearchKiatnakin AnalystPhatra Securities

We maintain our view that the upcoming Power Development Plan (PDP) should indicate +66 2 305 9204

sirichai.chal@kkpfg.com

new MW opportunities including IPP bidding. We believe RATCH could use the existing

Narumon Ekasamut ^^^

facilities of its expiring IPP (i.e. Ratchaburi Power Thermal Plant and Tri Energy) to Research Analyst