CK invests B130m in solar

Construction News Laos

Ch. Karnchang Plc, the country’s second-largest contractor, will invest 130 million baht in two solar power projects as part of its plan to expand into the sector.

The company’s board approved an outlay of 55 million baht on Monday to purchase a 30% stake in Nakhon Ratchasima Solar Co from Pacific Solar (Thailand) Co. It also approved a plan to acquire a 30% share in Chiangrai Solar Co from Pacific Solar (Thailand) Co for 75 million baht.

Ch. Karnchang also plans to sign an agreement with Pacific Solar to develop a 100-megawatt solar power project to be set up in the future.

Executive vice-president Anukool Tuntima said solar energy had a bright outlook but construction was still king.

An analyst from KGI Securities agreed that returns from solar projects would be slight given their small capacity.

Nakhon Ratchasima Solar is developing a six-megawatt project at a cost of 708 million baht, and Chiang Rai Solar’s 944-million baht project has an eight-MW capacity.

The projects are small compared with the 76-billion-baht Xayaburi hydropower project in Laos, or the large contracts the company has won for the Purple and Blue lines of the MRT in Bangkok, the analyst said.

KGI Securities forecasts total revenue for CK next year at about 16 billion baht, a 151% rise from 6.367 billion estimated for this year.

The Xayaburi project is expected to contribute 57% of next year’s revenue with the Purple line providing 19% and the Blue line 17%.

KGI forecasts CK’s net profit next year at 920 million baht, reversing an expected net loss of 100 million this year.

CK shares closed yesterday on the SET at 8.80 baht, down 20 satang.


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