GUNKUL reports a remarkable 18.36% growth in net operating profit for the first half of the year, reaching 924.42 million baht, with a net margin increasing to 20%. The second quarter also shows a beautiful and continuous growth of 14.44% in profit.

Gunkul Engineering Public Company Limited (GUNKUL) has announced its impressive financial results for the first half of 2023, showcasing total revenue of 4,090.01 million baht and a net operating profit growth of 18.36%, amounting to 924.42 million baht. The gross profit margin and net profit margin have consistently increased due to improved operational cost management across all businesses, alongside a continuous rise in interest income and other revenues. Management is confident that the second half of the year will see outstanding performance across all three business sectors, preparing to sign additional Power Purchase Agreements (PPAs) for 319 megawatts, increasing the green power portfolio to 1,579 megawatts, and anticipating good news regarding several large EPC projects, with a backlog increase of over 100%.

Mr. Naruchon Damrongpiyawut, CEO of Gunkul Engineering Public Company Limited, stated, "In the first half of this year, Gunkul Engineering Public Company Limited has achieved satisfactory results, with total revenue of 4,090.01 million baht and a net operating profit of 924.42 million baht (excluding gains or losses from foreign exchange and changes in the fair value of derivatives), representing an 18.36% growth from a net operating profit of 781 million baht in the first half of 2022. All three core businesses of the company have consistently delivered good returns, with 72% of gross profit and profit sharing by business type coming from the green power generation sector, which includes solar power plants both domestically and internationally, wind power plants, and private PPA solar rooftop projects that will continue to grow. Meanwhile, 17% of gross profit and profit sharing comes from the EPC contracting business, and 11% from the manufacturing and sale of electrical equipment.

For the second quarter of 2023, the company reported total revenue of 1,995 million baht and a net operating profit of 529.71 million baht (excluding gains or losses from foreign exchange and changes in the fair value of derivatives), an increase of 14.44% from a net operating profit of 462.42 million baht in the same quarter last year. The company has improved its profitability significantly, with a gross profit margin of 41.49% and a net profit margin of 24.33%, up from 33.77% and 20.12% in the same quarter last year. Revenue and profits from wind and solar power plants were similar to the same period last year, while revenue from the EPC business and electrical equipment sales met targets but were lower than in the second quarter of the previous year, which included the delivery of large power plant construction projects. Currently, the company has a backlog of over 4,000 million baht, which is expected to generate additional revenue in the third and fourth quarters of approximately 1,800-2,200 million baht, in line with the construction and delivery plans for each project. The return on equity (ROE) stands at 12.51%, and the interest-bearing debt to equity ratio (IBD/E) is low at just 1.07 times, allowing for significant investment expansion in green projects.

"For the second half of 2023, GUNKUL aims for revenue growth of approximately 10-15% this year, with total revenue over the next three years expected to exceed 35,000 million baht, following the 'Equation of Progress' strategy across all three business groups.

● Green Power Generation Business aims to build on the success of the first half of the year. For domestic projects, revenue is expected to grow due to seasonal factors, especially in wind and solar farm projects. The company is preparing to sign additional PPAs totaling 319 megawatts, which will increase the green power portfolio to 1,579 megawatts. Additionally, negotiations are ongoing for green power projects in the Philippines. Another achievement for the green power business in 2023 is the establishment of a Direct PPA partnership with leading Japanese industrial partner muRata, marking the beginning of building a network of partners in digital energy infrastructure to support the transition to green energy and attract economic opportunities for the country.

● EPC Contracting Business is preparing to bid for several large construction projects (EPC), including a 230-kilovolt submarine cable system development project, as well as solar and wind farm construction projects. The company is confident in its chances of winning contracts, which will significantly increase the backlog value by over 100% from the current 4,000 million baht, including a high-voltage 500-kilovolt transmission line construction project worth over 675 million baht connecting Bang Lamung to Pluak Daeng, for which the company signed a contract with the Electricity Generating Authority of Thailand (EGAT) in the first half of the year. This is a significant milestone in promoting energy security in the Eastern Economic Corridor (EEC), a key economic driver for the country. Additionally, the unlocking of rooftop solar permits and tax incentives is expected to positively impact the company's subsidiary business operating under the GRoof brand.

● Manufacturing and Sale of Electrical Equipment The company plans to build on the success of the first half of the year by increasing sales of existing products and expanding its base with new products, targeting the promotion of inverter and battery solution equipment to the market after being appointed by SUNGROW, a global leader in solar inverter equipment, as an official distributor (Tier 1 Distributor) in Thailand, aligning with the current clean energy market trend.

The company is committed to following a systematic three-year strategic framework and preparing for investments to support long-term growth, backed by a strong clean energy portfolio of 1,579 megawatts. Additionally, it is developing approximately 1,500 megawatts of new projects, with a roadmap to achieve a total installed capacity of over 2,000 megawatts by 2027. The company has also gained the trust of both public and private sectors in its two other business groups and is confident in GUNKUL's potential to enter new S-Curve businesses beyond the energy industry, focusing on its strengths to expand into the New S-Curve sectors related to Green Infrastructure, in line with the mega-trend of sustainability and ESG. The company has prepared an investment budget of approximately 35,000 million baht over the next 3-5 years.