On Thursday at 12:13 PM (Bangkok time), the share price of Gunkul Engineering Public Company Limited (SET: GUNKUL) surged by 5.17% or THB 0.18 to THB 3.66, with a trading value of THB 434.39 million.
Yuanta Securities (Thailand) maintains a positive long-term outlook for the earnings performance of GUNKUL, driven by the company’s growth under the thematic trend of grid investment and its expansion of renewable energy generation capacity across Southeast Asia. GUNKUL is well-positioned to seize opportunities in Thailand as well as in the Philippines.
According to the brokerage, GUNKUL edges other power plant operators from its upstream presence through the trading business and the Engineering, Procurement, and Construction (EPC) segment, not only from within its own group but also from other independent power producers.
Furthermore, the company stands to benefit from the anticipated enhancement of the Electricity Generating Authority of Thailand’s (EGAT) transmission lines to accommodate AI-focused data centers, leading to an increase in its project backlog.
As of the end of 1Q26, GUNKUL reported a backlog of THB 4.5 billion, with an additional pipeline of new projects worth over THB 20 billion up for bidding. The company is expected to have a win rate of 15-20% on these new projects, excluding further opportunities in the rapidly growing household solar rooftop market.
In addition, Yuanta has revised its profit estimate for GUNKUL in 2027 to THB 2.5 billion, representing a 21% growth from 2026. GUNKUL is considered a standout stock, buoyed by positive momentum arising from a new cycle in Thailand’s power industry.
The company’s absence of exposure to natural gas price volatility and its strong leverage from increasing government support for alternative energy also contribute to its attractiveness.
Given these factors, it is recommended that GUNKUL’s price-to-earnings ratio (PER) be re-rated to at least 20x, in line with its sector peers, resulting in a target price of THB 5.65 by the end of 2027.
