GUNKUL: A Lack of Market Makers

Gunkul Engineering Public Company Limited (GUNKUL) is the stock that has strong fundamentals and its core businesses such as trading, power, and engineering, procurement, and construction (EPC) continue to grow continuously, but the share price barely moves or nearly flats over the years, moreover, there’s not much trading volume compared to its peers. 

 

Furthermore, investors usually shun GUNKUL when the market moves upside as speculation on other stocks besides GUNKUL is getting benefitted faster and easier.   

 

GUNKUL is a large company that operates various businesses, its original trading business as of now has stepped into the transition of transmission line to underground, while the power business has expanded overseas, particularly in Vietnam, with more projects to come in the future.  

 

Recently, GUNKUL invested 1,471 million baht to acquire Tan Chau solar power plant in Vietnam, with production capacity of 50 MW and has been a commercial sale of electricity since October 1,  2020. This solar farm has signed a 20-year power purchase agreement with Vietnam Electricity (EVN), expecting to generate the revenue of 180 million baht per year.  

 

For the operating results, in 2016, the net profit was 537 million baht with a total income of 3,638 million baht. In 2017, earnings increased to 635 million baht with a total revenue of 5,124 million baht. In 2018, profit spiked to 1,090 million baht with a total revenue of 6,730 million baht and last year the net profit jumped to 2,147 million baht with a total revenue of 7,463 million baht.  

 

And this year, GUNKUL has already booked a profit of 1,719 million baht for the first nine months and total income for the period was 7,009 million baht.

 

Thus GUNKUL is truly a solid fundamental stock with a potential long-term growth.

 

But why did the price move in flatline and rarely response to any factors, standing at ฿2.00/share for nearly a year. Or maybe there was no “market maker”, the major investors, joining this party, reflecting GUNKUL’s share price to barely change.  

 

This is the task that GUNKUL has to solve in order to attract those major investors.