The most anticipated bidding in the energy sector right now is the Thai government’s 5,203-megawatts renewable power plan- Gulf and Gunkul are the two prominent candidates to win the major stake in this governmental bidding.
Along with Gulf Engineering (SET:GULF) and Gunkul Engineering (SET:GUNKUL), the Thai Solar Energy (SET:TSE) are also among the top qualified companies to gain a significant portion in market share as their renewable projects proposals are most qualified.
The renewable energy plan is split into two parts. The first phase refers to the offer for 5,203 megawatts of renewable energy, which will be announced in April 5, while the second refers to the open bid for another 3,668.5 megawatts, but the Energy Regulatory Commission (ERC) has yet to announce the timetable.
The power project will be a Feed-in-Tariffs (FiT) policy with duration 2022-2030 as the government wants to depend less on fossil fuels, part of efforts to reduce carbon dioxide emissions.
25 of Gunkul project proposals are qualified for the bid. This include their solar farm, solar-battery farm as well as wind energy projects. While Gulf did not disclosed the total amount but a number of proposals thar are qualified, markets expectes a number of them including 9 wind farm projects.
Mr. Somboon Aueatchasai, CEO of Gunkul, stated, the business allocated a 25-billion-baht investment allocation for the 3,668.5 megawatts phrase two project. He said: “I’m quite certain we will qualify for many projects,” he continued, “which will increase our power production to an unprecedented capacity.”
Ms. Yupapin Wangviwat, Gulf Chief Financial Officer, anticipates a 30% increase in 2023 revenue. And the GULF-GUNKUL combined growth projection is still dependent on the auction results tomorrow.
In addition to Gulf-Gunkul, RATCH Group (SET:RATCH), SUPER Energy Corporation (SET:SUPER), and Thai Solar Energy Company also bid on this round of renewable energy plan. Ratch announces that eight of their projects totaling 420 megawatts are eligible for the first phrase, and they will also apply for phrase two projects with their solar farm and wind energy portfolio.
16 of Super Energy’s 19 bids are approved in the first phrase as well, totaling 333.74 megawatts. Super energy intends to apply for phrase 2 initiatives as well.
While Thai Solar Energy announced that 38 of their projects are qualified in the first round of selection process.
Krungsri Capital Securities believes Gulf, Gunkul, and Thai Solar Energy will win this first bid because they have the most eligible projects, while giving a “BUY” recommendation on Gunkul with a target price of 5.00 baht per share after a 25% drop in share prices year-to-date. The analyst also eyes Gulf at a target price of 55 baht.
Mr. Sawat Sinsadok says, Gunkul and Gulf will gain the most market shares from the 5,203 megawatts. Gunkul may win up to 400-500 megawatts, with earnings of 400-500 million baht, representing a 15-20% rise over annual earnings, while Gulf is anticipated to win more than or equal to Gunkul. Additionally, Mr. Suwat added that Gulf and Gunkul, as well as their joint company, are anticipated to acquire the most shares in the second phase.
