GUNKUL Hits a New High at ฿3.18/Share, Analyst recommends “Buy” TP at ฿4.70/Share

The share price of GUNKUL Engineering Public Company Limited (GUNKUL) has made a new high in one year at THB 3.18/share.
As of 15.40 pm local time in Thailand, the share price of GUNKUL is THB 3.14/share, increased THB 0.06 or 1.95%, during the session, the highest share price was THB 3.18 and the lowest was THB 3.10 with a trading value of THB 267 million. GUNKUL has a 49.68% of upside at the target price of THB 4.70.

Additionally, GUNKUL has been on a hike for 2 days since the share price was at THB 2.98 on 12 June 19 and reached the highest point in a year since the price was at THB 3.15 on 6 March 2018.
LH Securities recommends “BUY” GUNKUIL at the target price of THB 4.70 and expects profit growth in 2Q19 will present a good performance, compared to the 1Q19 net profit of THB 225 million due to GUNKUL has been acquiring the revenue from Kimitsu Solar Power Plant which has commenced since April 19.

LH Securities also estimates the profit of 2019-2020 to increase to 1,698-1,816 million, growing 29% of CAGR from the project of Wind Power Plant 170 MW, expecting to earn approximately THB 900-1,000 million per year with adder 3.50/kwh for 10 years, starting from 2018. The long term profit of GUNKUL is mainly from Renewable Energy and EPC Businesses.

Moreover, the Engineering, procurement and construction (EPC) businesses which a subsidiary company FEC has a backlog around 7 billion in 1Q19 is expecting to recognize the revenue in 2019 for approximately THB 2.6 billion.