GUNKUL Extends the Gain to Bt3.72 as “TRIS” Upgrades Corporate Rating to “BBB+”

GUNKUL Extends the Gain to Bt3.72 as “TRIS” Upgrades Corporate Rating to “BBB+”.

The share price of Gunkul Engineering Public Company Limited (GUNKUL) extended its gain to ฿3.72/share, representing an increase of ฿0.06/share or 1.64% with a trading value of 671 million baht as of 11:11 local time in Thailand on Thursday.


The rally in GUNKUL’s share price might be due to the anticipation of gaining higher earnings in 2021 as the company would record full revenue from its newly commercialized power plant projects worth 140MW in 4Q20, coupled with its plan to enter into hemp-related business in which the company had made a clear strategic plan for its business through Kaohoon TV Online Program yesterday.


Mr. Somboon Aueatchasai, Chief Executive Officer of GUNKUL, stated that the company has more than 3,000 rais of vacant land and the company is expecting to launch a pioneer project of growing hemp on a 120 rais of land under its wind turbine.

Revenue generation from full-cycle hemp business on 120 rais is estimated around 1,200 million baht per year. The project should be completed in 3Q21 and the full revenue recognition should begin in 4Q21.


In the meantime, TRIS Rating has upgraded GUNKUL’s company rating to “BBB+” from “BBB” and the rating on GUNKUL’s senior unsecured debentures to “BBB” from “BBB-”. The issue rating’s one-notch below the company rating reflects the structural subordination of claims under the debentures.

At the same time, TRIS Rating revises the rating outlook on GUNKUL to “stable” from “positive”. The upgrade of ratings mirrors GUNKUL’s heightened cash flow as well as improvement in its debt serviceability.


The ratings continue to reflect GUNKUL’s strong competitive edge in the electrical equipment business, merits from vertical integration, and predictable cash flows from the power business. However, the ratings are held back by growing overseas investments which entail higher country risk and concerns over expansion of the company’s engineering, procurement, and construction (EPC) business.

Back to top button