On June 26, 2025, Gulf Renewable Energy Company Limited (GRE), a subsidiary of Gulf Development Public Company Limited (SET: GULF), made a strategic investment in two subsidiaries of Gunkul Engineering Public Company Limited (SET: GUNKUL): Gunkul Solar Powergen Company Limited (GSPG) and Gunkul One Energy 2 Company Limited (GOE2).
GRE acquired a 50% stake in each company for approximately THB 704 million, while GUNKUL retains the other 50%, as such, GRE’s equity involvement now equates to 230.4 megawatts.
Together, GSPG and GOE2 are developing nine solar power projects with a total capacity of 460.8 megawatts, including seven solar farms (410.2 megawatts) and two solar farms with battery energy storage (50.6 megawatts).
These projects have secured 25-year power purchase agreements with the Electricity Generating Authority of Thailand (EGAT) and are set to begin operations between 2026 and 2030.
The investment marks a significant partnership, leveraging GULF’s prowess in power generation and GUNKUL’s renewable energy expertise. It aims to bolster renewable energy capabilities, supporting GULF’s goal to boost its renewable energy portfolio to at least 40% by 2035.
This transaction also serves to reinforce the partnership between two groups of companies with specific areas of expertise.
GUNKUL possesses comprehensive capabilities in renewable energy, both domestically and internationally, as well as expertise in engineering and construction of power infrastructure, and in providing power plant management services. Meanwhile, GULF excels in the power business both in Thailand and overseas, leveraging its financial strength and global supply chain network.
This collaboration will strengthen the potential to jointly develop renewable energy projects, harnessing efficiencies from economies of scale, thereby reducing operating costs. It will also enhance the competitiveness and ability to invest in renewable energy projects both domestically and internationally.
Bualuang Securities noted that GULF remains outstanding due to its continual profit growth trajectory.
Regarding the recent acquisition of solar power assets, it is estimated that this deal will increase GULF’s profits by 1–2% annually, which, although moderate, represents stable growth and reflects the strength of GULF’s diversified business management. If GULF expands its stake by an additional 400 MW, profits could rise by up to 4% per year. The securities firm set a target price for GULF at THB 72.
For GUNKUL, the focus is currently on financial restructuring. The sale of a 50% stake in the power plants to GULF significantly reduces GUNKUL’s debt-to-equity ratio, resulting in a lower cost of debt, enhancing financial flexibility, and paving the way for further business expansion in the future.
Bualuang’s analysts stated that although GUNKUL’s profits might not see a short-term boost, reducing debt is a crucial step in laying a robust financial foundation to support medium to long-term growth. The firm set a target price for GUNKUL at THB 4 per share.
Additionally, Globlex Securities stated that GULF’s acquisition of a 50% stake in these nine solar farm projects is expected to increase the company’s annual profit by approximately THB 300 million. Should GULF opt to invest in an additional 320 MW, the profit increase could reach THB 600 million per year.
