Thailand’s Gunkul Engineering optimistic on outlook for revenue

Construction News
Somboon Aueatchasai, chief executive of Gunkul

Thailand’s Gunkul Engineering optimistic on outlook for revenue

SET-listed Gunkul Engineering, a renewable energy developer and construction firm, expects its revenue to grow sharply by 72% to 16 billion baht in the next couple of years, up from 9.32 billion last year, thanks to expansion of a range of businesses, notably clean energy and cannabis.

The company aims to increase earnings before interest, taxes, depreciation and amortisation (Ebitda) to 7 billion baht in the next couple of years from 4.73 billion in 2021.

Gunkul’s main sources of revenue are clean power generation, credit for rooftop solar panel installation, electrical equipment sales, construction and cannabis businesses.

To achieve the goal, Gunkul plans to allocate roughly 20 billion baht in capital spending for business expansion over the next three years, said Somboon Aueatchasai, chief executive of Gunkul.

The lion’s share of the budget, some 17 billion baht, will go to clean energy projects, including new asset acquisitions in Asia-Pacific, he said.

Some 2 billion baht will be spent on cannabis-related businesses and the remaining 1 billion baht will fuel innovative businesses.

Mr Somboon expects the 2022 Ebitda to grow by 30-35% from last year, driven by acquisition of new electricity generation assets, with combined capacity of 100 megawatts.

The move will increase the company’s total capacity to 750MW from 650MW at present.

The company expects its high voltage equipment sales to stand at 1.5 billion baht this year.

In the construction sector, Gunkul believes it can rack up 2.5-3 billion baht in revenue mainly from the construction backlog and turnkey business.

The company plans to launch two innovative electrical products through “Godung Faifa”, an online shopping platform for electrical equipment.

Gunkul will also continue to invest in cannabis product development, which is marked as its S-curve business.

The company expects to have complete revenue recognition in 2023.

It is now waiting for a licence to run Gan Chaya Clinic, a wellness and cannabis medicine facility in Bangkok.

Gunkul also plans to spin off its construction business as Future Electrical Control Co and have it listed on the stock market.

The company plans to launch an initial public offering in the first quarter of next year, said Mr Somboon.