Ratchaburi Electricity

Ratchaburi Electricity Plc (RATCH)

RATCH has a balance sheet ready for growth and management is doing precisely that. A power plant investment in Dawei is eyed as the next growth spot. While plans are still in the early stages, what has become clear is management’s intention to deliver growth. 9M core profit forms 76% of our full-year estimate; we maintain our forecasts and DCF-based target price. We reiterate our OUTPERFORM call for the stock’s good growth prospects but limited downside risk given its supportive dividend outlook.