Gunkul eyes CP's EPC project

Sopacha: Waiting for green light

SET-listed Gunkul Engineering Plc is in talks with CP Group to join in the engineering, procurement and construction (EPC) of power lines after a CP-led consortium won the bid for a high-speed railway linking three airports.

The power lines for this project are worth 200-300 million baht, said Sopacha Dhumrongpiyawut, Gunkul's chief executive.

"This project is not as large as other works, but if we join it can improve future EPC work for fibre-optic lines alongside railways and other works related to high-speed railways," she said. "But we have to wait for the consortium to sign a contract with the State Railway of Thailand, expected on June 15."

Gunkul has secured an EPC backlog worth 7.07 billion baht, providing electrical construction services for power plants; overhead and underground electricity transmission; and distribution lines.

"Gunkul took over Future Electrical Control Co [FEC] over a year ago, and after that, FEC won five project auctions with state utilities and local administrations," Ms Sopacha said. "Of the total value, 2.05 billion baht is expected to be secured for 2019 revenue and the remainder will be booked in 2020-21."

She said the EPC works will total roughly 6 billion baht, including submarine cables in Koh Samui (1.7 billion baht), Koh Tao (1.4 billion) and Koh Panyee (220 million baht).

Ms Sopacha said Gunkul expects 2019 total revenue to reach 8 billion baht, up from 6.73 billion baht the year before.

One of its key competencies is fast expansion in the solar rooftop business, with plans to provide installation, construction and distribution. Solar and wind power are the main renewable sources for Gunkul.

"Revenue from renewables accounts for 70% of total revenue, while the remainder is EPC work and trading business," Ms Sopacha said.

Power capacity will reach 700 megawatts by 2019 from 600MW in 2018. Gunkul expects to double the capacity to 1 gigawatt by 2021.

Gunkul is emphasising the GRoof brand, positioned as a retail product for solar rooftops.

"We secured the backlog of GRoof solar rooftops at 40MW with plans to approach new clients by another 60-70MW annually," Ms Sopacha said. "Moreover, Gunkul will provide installation and construction services for large solar rooftops with several deals to be finalised this year."

Gunkul is in talks to acquire a solar farm in Vietnam with a capacity of 100-150MW and plans to join the new round of auctions for three solar farms in Malaysia and two new solar farms in Japan, with combined power capacity of 130MW in both countries.

Gunkul was founded in 1982 by the Dhumrongpiyawut family and began life as a supplier and trader of electrical equipment. In the years that followed, the firm expanded into manufacturing, engineering, procurement and construction.

Gunkul listed on the Stock Exchange of Thailand in 2010 to raise capital for renewable power generation. It began making solar panels in 2014.