Gunkul Engineering Public Company Limited

Innovest X Securities stated that the new Power Development Plan (PDP2026) is nearly complete, with public hearings scheduled for September 8, and it is expected to be approved by the National Energy Policy Committee within the end of 2026. The first auction is expected to take place in 2027, which will be a catalyst for a re-rating of utility stocks. The plan increases the share of clean energy to at least 65% and lifts the cap on Direct PPA from the previous 2,000 MW for the industrial sector and data centers. GULF has potential for additional investment of around 240-290 billion baht under a net debt-to-equity ratio of 1.0 times, while GPSC has potential for additional investment of around 95-114 billion baht under a net debt-to-equity ratio of 0.8 times. GUNKUL has flexible financing capacity of 39-44 billion baht, while BGRIM has more financial constraints due to a high net debt-to-equity ratio of 2.1 times, allowing only 23-28 billion baht in additional investment. GULF remains the top pick in the group, and GUNKUL is the wildcard pick, while GPSC and BGRIM are secondary picks.

Yuanta Securities (Thailand) released an analysis after the Thailand Focus event, stating that the new Power Development Plan (PDP) will be positive for power plant stocks. It is expected that the new PDP will be clarified as early as September 2026, with a renewable energy share of no less than 60%, and will include Carbon Capture, Small Modular Reactor (SMR), and Direct PPA. The seminar featured Mr. Eknat Prompan, Minister of Energy, Dr. Harald Link, Chairman of B.Grimm Power Public Company Limited (BGRIM), and Mr. Yanis Ghitis, Chief of Commercial and Investment Officer of Digital Edge. Mr. Eknat stated that Direct PPA will help data centers access electricity at reasonable prices, and it is no longer limited to 2,000 megawatts, with all industrial groups allowed to participate. The 200 billion baht loan will support Solar Rooftop, Net Billing, and grid improvements. Dr. Harald Link said that Thailand's water supply is sufficient for many data centers, and seawater can be used. The research team favors GULF, GPSC, GUNKUL, and WHAUP, as well as data center-related stocks such as WHA, AMATA, and STECON.

Bualuang Securities maintains an overweight stance on power plant stocks relative to the market, expecting the draft PDP2026 plan to be announced at the end of September. The plan still targets 60% renewable energy and an average electricity tariff of around 4 to more than 4 baht per unit. Data center power demand has a base case of 8,811 megawatts through 2050, and the first batch of 2,000 megawatts under direct power purchase agreements remains a near-term catalyst. The research team sees GULF, GUNKUL and WHAUP as clear near-term beneficiaries, while GPSC and BGRIM should see pressure ease as fuel cost pass-through and plant restarts improve in 2027. The brokerage currently recommends buying GULF with a target price of 82 baht, GUNKUL at 5.50 baht, and BGRIM at 20 baht, while target prices for GPSC and WHAUP are under review. Second-quarter 2026 operating results for the five power plant companies under coverage totaled 13.7 billion baht, up 36% from a year earlier and 15% from the previous quarter, on combined revenue of 85 billion baht, up 8% from a year earlier and 20% from the previous quarter. Combined net profit fell 76% from a year earlier to 16 billion baht because the second quarter of 2025 included a special item for GULF from the GULF-INTUCH merger of 56.1 billion baht. Excluding that item, the group's underlying profit picture remains strong. GULF posted core profit of 10.4 billion baht, up 46% from a year earlier and 11% from the previous quarter, driven by renewable and independent power producer businesses. GUNKUL reported 567 million baht, up 9% from a year earlier and 31% from the previous quarter, helped by EPC backlog recognition. WHAUP reported 502 million baht, up 116% from a year earlier and 150% from the previous quarter, as Gheco-One returned to full operation. GPSC and BGRIM remain pressured by gas and coal costs with delayed pass-through to the fuel tariff.

Bualuang Securities said the million-rooftop solar project is a positive factor for GUNKUL's solar rooftop and EPC businesses, using a budget of 50 billion baht through free installation and payment via electricity bills, with interest rates of 2 to 4 percent, and cutting approval, installation and grid connection time to 7 to 30 days, while adding another 500 megawatts of household power purchase quota. However, the direct impact on profit is still not large compared with the main IPP and EPC businesses. For the second half of 2026, the research team expects core profit to be stronger than the first half, supported by gradual recognition of a construction and equipment backlog of about 4.2 to 4.5 billion baht. EPC revenue in the second half is expected to be higher than the first half, driven by power transmission and substation work in the EEC and data center related work for hyperscalers, which will support profit from the construction and services business. Another key upside is direct PPA, with a scenario that puts 2028 net profit at 2.9 billion baht if the company secures an additional 500 megawatts, and 3.2 billion baht if it secures 1,000 megawatts, compared with a base case of about 2.6 billion baht. However, net gearing would rise to about 1.1 times and 1.8 times respectively, leading the research team to view the level GUNKUL can support without raising capital or selling assets at about 500 to 1,000 megawatts, while securing more than that may require additional funding sources. On fundamentals, the recommendation is maintained at buy with a target price of 5.50 baht. In the short term, the stock is supported by accelerated backlog recognition in the second half of 2026, while solar rooftop is a supporting factor and DPPA is a key upside for medium-term growth, but balance sheet constraints need to be monitored if the company secures capacity above 1,000 megawatts.

The cabinet has approved the appointment of Chanthanon Wannakhajorn as the new permanent secretary of the Ministry of Energy, effective 1 October 2026, replacing the incumbent who will retire from government service. Chanthanon is currently a special expert attached to the Prime Minister's Office and a director of PTT Oil and Retail Business Public Company Limited, or OR. Analysts at Bualuang Securities view that this appointment may slightly delay the announcement of Thailand's Power Development Plan 2026–2053, or PDP 2026, from September, but expect it to be announced within 2026. They assess that GULF can accommodate around 2,000–3,000 megawatts of new projects, GUNKUL around 500 megawatts, and BGRIM 500–1,000 megawatts, and recommend investing in the renewable energy sector, especially GULF and GUNKUL as top picks.

The Office of the National Economic and Social Development Council reported that gross domestic product in the second quarter of 2026 expanded 1.9% from a year earlier, slowing from 2.8% in the first quarter but above the market forecast of 1.7%. The main support came from private investment, which grew strongly in line with investment promotion applications, while private consumption slowed to 1.9% from 3.3% in the previous quarter amid higher domestic energy prices, and government spending was weak because disbursement had already been accelerated earlier. Yuanta Securities expects consumption to recover clearly in the third quarter from the full-quarter impact of the Thai Chuay Thai Plus measures, and government spending to accelerate toward the end of the fiscal year. It maintains a positive view on construction contractors, power plants, industrial estates, retail, and food and beverage, citing stocks CK, STECON, GUNKUL, GULF, FORTH, SAMART, EPG, BJC, CPALL and CBG. The planning agency also raised its GDP forecast for this year to 2.0 to 2.5% from 1.5 to 2.5%, and lowered its inflation forecast to 1.5 to 2.0% from 2.0 to 3.0%, which helps ease pressure on monetary policy tightening.

The subcommittee drafting Thailand's Power Development Plan, or PDP2026, has considered four scenarios for the main fuel mix in power generation. Each scenario has renewable energy accounting for more than 60 percent of power generation, up to a maximum of 80 percent, while the share of small modular reactors, or SMRs, is set within a range of about 2,400 to 4,000 megawatts. Some scenarios may exceed 4,000 megawatts. During the first 10 years of the plan, the Electricity Generating Authority of Thailand, or EGAT, will remain the lead agency to study and carry out the initial phase of projects, after which private sector investment is expected to be opened up further in the future. The draft plan will be submitted to the Minister of Energy for consideration within this week, and public hearings are expected to begin by early September, before the plan can be announced in time within this year. The research unit of Asia Plus Securities said the PDP2026 will be a positive factor for power plant operators over the medium to long term, because it opens opportunities for a new investment cycle in power plant projects, especially renewable energy, and allows expansion into energy storage systems as well as SMR technology. Meanwhile, electricity demand from data centers and AI will be another key driver of investment in the power system, particularly demand for stable electricity from clean energy sources, and the opening of direct power purchase agreements will allow large electricity users to procure renewable power directly. The research unit selected top picks including Gulf Development Public Company Limited, or GULF, with a target price of 80 baht, and Gunkul Engineering Public Company Limited, or GUNKUL, with a target price of 6.40 baht. Krungsri Securities viewed progress on energy measures and plans as a positive factor for stocks in the infrastructure and power technology theme, with standout names including GULF, Global Power Synergy Public Company Limited, or GPSC, WHA Utilities and Power Public Company Limited, or WHAUP, and GUNKUL. In trading on August 17, 2026, power plant stocks rose, led by WHAUP closing at 8.20 baht, up 5.81 percent, GPSC closing at 49.50 baht, up 2.59 percent, BGRIM closing at 18.20 baht, up 2.82 percent, GULF closing at 65.25 baht, up 1.16 percent, and GUNKUL closing at 5.15 baht, up 0.98 percent.

Asia Plus Securities assesses that the power plant and renewable energy power plant group posted normalised profit in the second quarter of 2026, rising 18.4 percent quarter on quarter to 18.4 billion baht. The main driver was GULF, whose normalised profit rose sharply quarter on quarter from recognising dividend income from KBANK and growth in other income. The IPP power plant group also improved as electricity demand entered the high season in summer. GPSC likewise ran its IPP plants more, while GUNKUL benefited from the high season for solar and from trading and EPC businesses that continued to be recognised along with government infrastructure investment. Meanwhile, BGRIM, RATCH, BCPG and SSP saw normalised profit in the second quarter of 2026 decline quarter on quarter due to higher gas costs and seasonally weaker wind. For the third quarter of 2026, the group's normalised profit is expected to decline quarter on quarter from the high base in the second quarter of 2026. IPP players such as GULF and RATCH are expected to see electricity sales volumes soften after the high season, while SPP players such as BGRIM and GPSC are pressured by gas costs that are likely to remain elevated. Only operators with a high proportion of power plants in the United States, such as EGCO and BCPG, are expected to report better results quarter on quarter thanks to summer in the United States, while renewable energy players such as CKP, BCPG and SSP are expected to improve along with the high season for water and recovering wind. For full-year 2026, the group's normalised profit is still expected to grow year on year, with GULF as the main driver from gradually recognising projects that reach commercial operation as planned. GUNKUL is supported by government investment policy, and SSP begins to recognise new projects. EGCO is expected to see profit recover year on year from a low base as planned maintenance shutdowns decline. The investment strategy focuses on selective buying, with GULF at a fair value of 80 baht and GUNKUL at a fair value of 0.90 baht as top picks, given their 2026 profit outlook that remains notably strong year on year and support from new business opportunities under government policy plans. The expected weakening of third-quarter 2026 profit is viewed as merely a pause from the high level of second-quarter 2026 profit, and investors are advised to look for opportunities to gradually accumulate when share prices weaken.

Bualuang Securities released its review of the financial statements of 11 companies, finding that 8 reported better-than-expected profits: GUNKUL, CK, SPRC, CPF, CBG, AWC, HANA, and BCH. STECON and BH posted profits in line with expectations, while BTS reported a smaller loss than expected. GUNKUL posted core profit of 567 million baht, 7% above expectations. CK posted core profit of 800 million baht, 17% above expectations, and announced an interim dividend of 0.20 baht per share. SPRC posted core profit of 7.09 billion baht, 11% above expectations, and announced a first-half dividend of 0.50 baht per share. CPF posted core profit of 4.57 billion baht, 13% above market expectations. CBG posted core profit of 736 million baht, 13% above expectations. AWC posted core profit of 232 million baht, above expectations. HANA posted core profit of 278 million baht, 25% above expectations. BCH posted core profit of 343 million baht, 13% above expectations, and announced an interim dividend of 0.15 baht per share. STECON posted core profit of 910 million baht, in line with expectations. BH posted core profit of 1.89 billion baht, in line with expectations, and announced an interim dividend of 4 baht per share. BTS reported a core loss of 601 million baht, smaller than the slight profit originally expected.

Gunkul Engineering Public Company Limited, or GUNKUL, reported second-quarter 2569 core profit of 564 million baht, up 31.7% from the previous quarter and 17.8% from a year earlier, beating analyst expectations by 13%. Foreign exchange gains and derivative losses combined to a positive 10 million baht, bringing net profit to 575 million baht. Total revenue was 2.79 billion baht, up 9.9% from the previous quarter and 54.8% from a year earlier, roughly in line with expectations. Growth was driven by the EPC business, which rose 4.4% from the previous quarter and 188.0% from a year earlier, supported by power plant construction, government projects, and accelerated solar roof installations under government support measures. The electrical equipment distribution business grew 29.1% from the previous quarter and 22.0% from a year earlier, helped by government system investment. Private PPA revenue declined because of a high base from a major customer in the second quarter of 2568. Gross margin was 33.4%, above the expected 31.9%, as the electrical equipment distribution gross margin rose to 24.5% from 15.9% in the first quarter of 2569, and the private PPA business contributed a larger share of recurring revenue. Share of profit from associates was 132 million baht, down 12.3% from the previous quarter but up 4.5% from a year earlier, as more variable weather and monsoons increased wind strength compared with a year ago. The previous quarter also had one project whose adder expired, reducing the share of profit. Yuanta Securities expects the third-quarter 2569 trend to be similar to the second quarter at 500 to 600 million baht, with EPC and electrical equipment distribution remaining high from the previous quarter and growing strongly from a year earlier. Backlog currently stands at 4.3 to 4.5 billion baht, stable from the end of the first quarter of 2569, even after substantial revenue recognition in the second quarter. There are also projects under bidding with a chance of winning worth around 6 billion baht, plus or minus, during the third and fourth quarters of 2569. Share of profit from associates is expected to recover from the previous quarter because it is the high season. Current capacity attributable to the company is 2,121 megawatts, with more than 200 megawatts awaiting PPA signing, expected to be signed within the third quarter of 2569. Investment in the Philippines is expected to add at least another 200 megawatts, which is not yet included in estimates. In 2569 to 2570, new power plants awaiting commercial operation date total 88 megawatts and 801 megawatts respectively. The current market price trades at 2569 to 2570 price-to-earnings ratios of only 22 times and 18 times respectively, below the sector average, and GUNKUL benefits across all segments of the electricity and clean energy business. First-half 2569 core profit was 993 million baht, up 19.6% from a year earlier, representing 48% of Yuanta Securities' full-year core profit estimate. The firm maintains its estimates, keeps its end-2570 target price at 8.70 baht, and reiterates its buy recommendation.

MSCI rebalancing supports Thai stocks with net inflows of 500 million baht. GUNKUL and HANA surprised by entering the small-cap index, while PTTEP and TRUE received higher weightings. The market impact is expected to be neutral to slightly positive. PTT posted second-quarter profit for fiscal year 2026 surging 143.9 percent to 52.525 billion baht, supported by international trading, petrochemicals, refining and oil businesses as product price spreads improved, pushing first-half profit to 78.263 billion baht, up 74.5 percent. TOP reported net profit of 8.284 billion baht, up 28 percent year-on-year, with first-half net profit of 27.765 billion baht, and is moving ahead with the CFP project scheduled for 2028. AOT showed third-quarter profit for fiscal year 2026 of 4.44168 billion baht, up 14.93 percent, supported by a 2.61 percent increase in aeronautical revenue, especially passenger service charge revenue rising by 168.36 million baht, or 2.85 percent, after the charge was raised from 730 baht to 1,120 baht per person, pushing nine-month net profit to 14.81233 billion baht, up 3.86 percent, while total passengers reached 99.03 million, up 1.84 percent, with an average target price of 67.56 baht. BGRIM posted second-quarter profit for fiscal year 2026 growing by 676 million baht, up 9,557 percent, on higher total electricity sales volume, and continues expanding its renewable portfolio, targeting six LNG cargoes of 280,000 tonnes this year and gradually achieving commercial operation dates for new power plants, with an interim dividend of 0.18 baht per share. ACE reported second-quarter net profit for fiscal year 2026 of 278.7 million baht, surging 87.3 percent, supported by strong growth in solar and waste-to-energy power plants and lower financial costs, and is advancing a clean energy portfolio of 92 projects with total capacity of 767.42 megawatts. MGC posted second-quarter profit for fiscal year 2026 surging 554 percent to 352 million baht, a record high for four consecutive quarters, pushing first-half net profit to 675 million baht, up 521 percent, supported by deliveries of XPENG and Alpha X electric vehicles growing 688 percent, and the board approved an interim dividend of 0.24 baht per share with the XD date on 26 August. JMART's CEO is confident second-half profit for fiscal year 2026 will exceed the first half, driven by the lock-phone business, SINGER, JMT and Suki Tee Noi, maintaining a profit target for 2028 of more than 2 billion baht. ACE said it will continue seeking opportunities to bid for clean energy power plants in the second half of 2026 and accelerate construction of new projects, expecting several more projects to reach commercial operation by 2027. 88TH has laid out three growth strategies, expanding the LYO portfolio into China and Hong Kong and building a new S-curve in the pet business through Monster Lab, with new revenue expected to be recognised from the second half of 2026 after second-quarter revenue reached 151.82 million baht, up 10.16 percent. GFC is shifting its second-half strategy with digital marketing plans targeting Gen Z to drive egg-freezing services, while accelerating expansion of its foreign customer base through nine agents, aiming to raise the foreign customer share to 25 percent, partnering with more than eight hospitals, and approving an interim dividend of 0.03 baht per share. ILINK expects solar product sales revenue to double this year, benefiting from government subsidies of 50,000 baht per household for rooftop installation and a 200,000 baht tax deduction, with about 9 billion baht in auctions still pending, and hinted third-quarter results will grow on surging trading and engineering demand. III expects second-half performance to improve as the freight transport business enters its high season, advancing its Logistics and Beyond strategy to build an aviation ecosystem, with two to three M&A deals under negotiation and expected to be concluded within this year, while raising this year's revenue growth target to 20 percent from 15 percent, after posting second-quarter profit for fiscal year 2026 of 140.9 million baht, a ten-quarter high. SAWAD is pushing ahead at full speed, benefiting from the high season in the second half, confident this year's growth will meet targets, with first-half profit of 2.74 billion baht, up 16 percent, and brokers see SAWAD's asset quality as having passed its lowest point. TEAMG posted first-half revenue for fiscal year 2026 of 1.266 billion baht, up 22 percent, and profit of 111 million baht, up 18 percent, after second-quarter revenue of 635 million baht, up 19 percent, and profit of 61 million baht, up 29 percent, with the zoo phase two and light red line rail projects lifting backlog to 5.988 billion baht, and targets new work of at least 1 billion baht in the second half. KLINIQ posted second-quarter net profit for fiscal year 2026 surging to 111.53 million baht, up 24.9 percent, pushing first-half profit to 232.66 million baht, and the board approved an interim dividend of 0.88 baht per share with the XD date on 27 August and payment on 11 September 2026. PIS posted first-half net profit of 164 million baht, up 8 percent, with total revenue reaching 1.531 billion baht, up 6 percent, on continued project deliveries and effective cost control, and the second-half outlook is bright as it bids for new work to add to a backlog of more than 6.096 billion baht to be recognised over the next three to four years, confident of driving this year's revenue growth of 10 to 15 percent. MTC is expanding its loan portfolio amid Thailand's slowing economy, with first-half revenue of 16.064 billion baht, up 8.63 percent, and net profit of 3.728 billion baht, up 15.84 percent, while keeping NPLs at 2.61 percent and expressing confidence that second-half loan growth will be around 10 percent.

MSCI announced the results of its latest index review, with no changes to Thai stocks in the MSCI Global Standard index, but with additions and deletions of Thai stocks in the MSCI Global Small Cap index, effective after the close of trading on August 31, 2026. Two Thai stocks were added: Gunkul Engineering Public Company Limited, or GUNKUL, and Hana Microelectronics Public Company Limited, or HANA. Two stocks were removed: Chularat Hospital Public Company Limited, or CHG, and Jasmine Technology Solution Public Company Limited, or JTS.

Krungsri Securities expects the MSCI index rebalancing in August 2026 to drive net inflows into the Thai stock market of about 15 million US dollars, or roughly 500 million baht. In the MSCI Standard Index, no Thai stocks will be added or removed, with the number of constituents held at 18 companies and Thailand's investment weight steady at 1.0 percent, translating into inflows of 5 million US dollars, or about 165 million baht. Meanwhile, PTTEP's weight is being increased by about 23 million US dollars, or roughly 760 million baht, and TRUE's by about 17.5 million US dollars, or roughly 578 million baht. CPN's weight is being reduced by about 23.5 million US dollars, or roughly 777 million baht. In the MSCI Small Cap Index, GUNKUL is a new Thai entrant and is expected to receive about 8 million US dollars, or roughly 264 million baht, while HANA is expected to receive about 10 million US dollars, or roughly 330 million baht. CHG and JTS are being removed from the index, resulting in total net inflows into the MSCI Thailand Small Cap Index of 10 million US dollars, or roughly 330 million baht, and Thailand's weight rising from 2.5 percent to 2.6 percent.

Bualuang Securities assesses the SET Index over the final five months of 2026 to be in a sideways-up trend, with a range of 1,580 to 1,700 points. Mr. Piriyapol Khongwanit, Director of Investment Analysis for Wealth Management at Bualuang Securities, stated that first-half earnings of Thai listed companies grew strongly, leading to an upward revision of the market's earnings per share estimate by about 4% to 103 baht. When rolling over to mid-2027, the SET Index target becomes 1,710 points. The index is expected to peak in the fourth quarter, supported by the high season for tourism, stable high crude oil prices, and continued foreign capital inflows. Notably, net inflows in July reached as high as 47 billion baht, bringing total net purchases since the start of the year to around 74 billion baht. In the second half, there is potential for additional foreign inflows of 160 to 200 billion baht. On investment strategy, a barbell portfolio is recommended, balancing growth stocks and high-dividend stocks, highlighting five key themes: Long-term Growth, such as GULF, WHAUP, and GUNKUL; Defensive and Yield Play, such as KTB; Normalization and Stimulus, such as COM7, CRC, ERW, and CBG; Event Play from Super El Niño, such as CPF, BTG, and ICHI; and Geopolitical and Inflation Hedge, such as PTT and PTTGC. It also advises avoiding property and asset management stocks due to fragile domestic purchasing power. Meanwhile, US technology stocks remain positive despite short-term corrections, recommending accumulation of quality growth names with clear earnings and valuation support. For Thai technology stocks, only short-term speculative trading is suggested. Mr. Chaiporn Nompitakcharoen, Managing Director of Securities Business at Bualuang Securities, disclosed that for the final five months, the recommended portfolio allocation is 74% equities, 22% fixed income, and 4% alternative assets and gold. The US stock market is viewed as the most attractive, while the firm continues to expand its wealth advisory business and promote block trades to capture the uptrend.

The Ministry of Finance is preparing to provide a grant of 50,000 baht per household to those joining the Solar Rooftop program, against an average installation cost of around 100,000 to 150,000 baht per household, with a minimum installation size of 5 kilowatts. The project aims to assist 500,000 to 1,000,000 households with average monthly electricity bills of 3,000 to 4,000 baht, using a budget from a 200 billion baht loan source. Analysts at TTB Wealth Securities stated that this policy will directly benefit Gunkul Engineering, as well as building material and home improvement retailers such as Home Product Center, Siam Global House, and Do Home. Meanwhile, analysts at Land and Houses Securities view it as a positive factor for GUNKUL and Synnex Thailand shares. In addition, the Ministry of Finance is collaborating with the Ministry of Interior, the Metropolitan Electricity Authority, the Provincial Electricity Authority, and state specialized financial institutions, namely the Government Savings Bank and the Government Housing Bank, to support low-interest loans for the remaining costs not covered by the government subsidy.

Mr. Phobchai Pattarawich, strategist at InnovestX, said the Thai stock market this week is likely to edge up within a range of 1,600 to 1,650 points, supported by strong second-quarter 2026 earnings. As of last Friday, 96 listed companies had reported results, accounting for 56 percent of total market capitalisation, with combined net profit of 196 billion baht, up 23 percent from the previous quarter, and 56 percent of companies with estimates beat profit forecasts. Additional positive factors include weak US employment data, which raises expectations that the Federal Reserve will hold rates steady, and the MSCI index review on 13 August 2026, which may increase the weighting of Thai stocks. For investment strategy, InnovestX recommends GUNKUL on its profit growth outlook and government measures promoting solar rooftops, and TIDLOR on strong earnings growth, lower financial costs, and a share buyback programme. It also highlights other stocks with outstanding results, including MTC, PR9, AP, CPN, KCE, ERW, and HANA.

Asia Plus Securities assesses that the global investment landscape is facing challenges on all fronts, amid a sharper-than-expected slowdown in US employment, which fuels hopes that the Federal Reserve will hold its policy rate at the September meeting. Meanwhile, domestic factors are receiving a significant boost from the rapidly strengthening baht, supported by continued foreign inflows into the Thai bond market, with cumulative net purchases this month exceeding 9.2 billion baht. The baht recently touched 32.98 per US dollar. The research team has identified three main industry groups in Thailand that stand to benefit positively from the strong baht. The first group comprises large-cap stocks that are prime targets for foreign fund flows, including commercial banks such as KBANK, SCB, BBL, and KTB; retail and tourism plays like AOT, CPALL, and CRC; telecoms such as ADVANC and TRUE; and construction materials like SCC. The second group consists of companies with high foreign-currency debt or costs, including power and energy firms such as GULF, BGRIM, GPSC, and PTTEP, and airlines like AAV. The third group covers businesses that rely heavily on imported raw materials, including agriculture and food companies such as TFG and TVO. In addition, the research team recommends portfolio strategies to navigate volatility, highlighting safe-haven stocks combined with gold as a hedge, and names SYNTEC, PTT, and GUNKUL as top picks for the Thai stock market, along with LITE01 and ZIJIN80 for overseas investment.

Gunkul Engineering, or GUNKUL, has signed an agreement with Land and Houses Bank for a total sustainability-linked credit facility of 1 billion baht. The funds will be used to develop clean energy projects currently underway and awaiting revenue recognition, totaling over 1,400 megawatts in Thailand and the Philippines. Domestic projects include solar and wind power with commercial operations scheduled gradually from 2027 to 2030, while a floating solar farm in the Philippines is set for commercial operation by late 2027. This partnership reflects confidence in GUNKUL's potential, with a renewable energy project portfolio exceeding 2,121 megawatts and over 40 years of energy engineering experience.

Analysts expect that the clarity of the new Data Center business regulations, which the government is preparing to approve, will help attract investment and benefit stocks in technology infrastructure, power, construction contracting, telecommunications, and industrial estates. The Board of Investment has already approved Data Center and Cloud Service projects worth over 958 billion baht. Power plant and utility groups such as WHAUP are expected to benefit from sales of industrial water and electrical systems, while GUNKUL, GULF, BGRIM, and STECON will gain from engineering systems, clean energy, and Data Center building construction. In the electronics sector, DELTA is highlighted as a standout stock due to demand for power supply systems and cooling technology for AI servers. HANA and KCE are supported by orders for high-end printed circuit boards, and WHA benefits from selling land in industrial estates to foreign investors. Additionally, BCPG is gaining from natural gas power plants in the United States that are seeing electricity demand from Data Centers, while INSET, ITEL, and SYMC have opportunities to undertake Data Center system installation, co-location services, and fiber optic network projects.

GUNKUL is in negotiations with international data center operators to expand its clean energy business alongside digital infrastructure. The company has outlined three business models: leasing infrastructure and space, undertaking construction and power supply, and co-investing as a data center operator itself. Currently, GUNKUL has approximately 600 to 700 megawatts of commercially operational power generation capacity, with another 1,500 megawatts under construction. Its EPC business has a backlog worth around 4 to 4.5 billion baht, of which 80 percent is EPC work and 20 percent is trading. In addition, GUNKUL can expand its total power generation capacity to 2,000 megawatts by mid-2026, ahead of its original target of 2027.

Analysts at Yuanta Securities Thailand, or YUANTA, say the formation of five working groups under the Joint Public-Private Sector Consultative Committee, or Krung-Or, will boost money circulating in the economy by as much as 600 billion to 800 billion baht per year if the country's investment ratio can be lifted from the current 22 to 23 percent to 30 percent of gross domestic product as targeted. The plan is divided into three phases: a short-term phase of six months, a medium-term phase of two years, and a long-term phase of four years, covering strategies in investment, artificial intelligence and digital technology, the green economy, finance, and healthcare. Stocks expected to benefit directly include GULF, GUNKUL, KTB, STECON, CK, FORTH, SKY, PIS, DITTO, SAMART, and TASCO, especially power-plant operators and companies likely to win project work from the public sector. Analysts recommend closely monitoring progress in the first six months, because if the plan is executed as scheduled it will help restore confidence and support long-term earnings growth.

Bualuang Securities expects the SET Index in August to move in a range of 1,600 to 1,700 points, supported by a broad-based earnings recovery, reflected in SET EPS being revised up by 4.2 percent in July and 6.3 percent year-to-date. Foreign investors bought a net 49 billion baht of Thai stocks in July and 76 billion baht year-to-date. Bualuang Securities recommends a Defensive Yield Core strategy combined with Satellite Alpha through four main themes. The first theme is Thailand Power Infrastructure Cycle, focusing on investment in transmission systems and renewable energy driven by data center electricity demand in the Eastern Economic Corridor reaching 26,045 megawatts. The government is preparing to invest 31 billion baht to expand the transmission system and plans to use remaining loan funds of around 200 billion baht to support solar rooftop and smart grid projects, benefiting stocks such as GULF and GUNKUL. The second theme is Higher for Longer Defensive-Dividend Rotation, focusing on high-dividend stocks amid high interest rates and geopolitical uncertainty, especially in the communications sector where earnings are still growing. ADVANC's second-quarter 2026 profit is expected to rise 24 percent year-on-year, and TRUE's by 48 percent year-on-year. The third theme is Policy-driven Tourism Recovery, focusing on the tourism sector which is expected to have passed its earnings trough in the second quarter of 2026, supported by government measures worth 1.75 billion baht, benefiting stocks such as ERW. The fourth theme is Selective Consumption Recovery, focusing on IT retail and beverage sectors that are still growing, with COM7 sales up 8 to 10 percent year-on-year, ADVICE up 13 to 15 percent year-on-year, and MOSHI expecting same-store sales growth of 4 percent, benefiting stocks such as CBG.

Analysts at Yuanta Securities Thailand forecast that GUNKUL will post a normalised profit of 500 million baht in the second quarter of 2026, up 16.7 percent from the previous quarter and up 4.4 percent from the same period a year earlier. This would mark the highest quarterly profit in seven quarters, supported by EPC project deliveries and trading business for power plant customers and EGAT, despite one wind project losing its adder tariff and a high profit base last year. Currently, the EPC and trading backlog stands at 3 to 4 billion baht, and in the third quarter of 2026 there are projects with a high win probability awaiting results worth another 7 to 8 billion baht. Meanwhile, the power plant business will be boosted by the high season for wind energy in the second half of 2026, leading to an expectation that profit in the third and fourth quarters of 2026 will stay above 500 million baht per quarter. GUNKUL's share price has already risen 166 percent from the start of the year to date, but with current earnings still strong and valuation not yet high compared with the sector average of nearly 30 times, together with an expected annual dividend yield of around 3 percent, the recommendation remains buy with a target price of 8.70 baht.

Upper Class Solution, a subsidiary of A5, has partnered with GUNKUL to install solar rooftop systems for A5 homeowners, supporting the government's public solar policy. GUNKUL brings over 40 years of clean energy expertise to design systems tailored to each home, while Upper Class Solution provides end-to-end management and services, from consultation to document support for government scheme participation. Homeowners can pay for the system in up to three interest-free installments, with solar panel warranties of up to 25 years and one-year fire insurance coverage of up to 1 million baht. The payback period is approximately five to seven years. Additionally, qualifying individuals can deduct equipment and installation costs from personal income tax up to 200,000 baht under a measure effective until 31 December 2028. The project is scheduled to run from 1 August to 31 December 2026.

Bualuang Securities expects net profit of Thai listed companies in the second quarter of 2026 to expand 24 percent from the same period last year and rise 2 percent from the first quarter, supported by higher energy prices, petrochemical spreads, mobile and internet service revenue, lower network costs, demand for electronic components for artificial intelligence and data centers, as well as new power generation capacity and profits from GULF's overseas power plant business. Meanwhile, the meat sector is pressured by lower meat prices, the banking group by narrowing interest margins, and the hospital group by fewer cash-paying patients and a slowdown in non-urgent treatments. Bualuang Securities highlights two investment approaches: picking stocks with still-strong second-quarter profit trends such as PTT, PTTGC, TRUE, ADVANC, AMATA, GULF, GUNKUL, and WHAUP, and gradually accumulating stocks with weak prices but expected strong profit recovery in the second half, such as CBG, ERW, CPF, and BTG.

Bualuang Securities forecasts total net profit of listed companies in the second quarter of 2026 to grow 24 percent compared to the same period last year, and 2 percent from the previous quarter. Supporting factors include the energy and petrochemical sectors benefiting from improved oil prices, refining margins, and petrochemical spreads, as well as continued growth in telecommunications, electronics, industrial estates, retail, and hotels. Meanwhile, banking, meat, and hospital sectors still face pressure. Bualuang Securities recommends two investment strategies: selective play in stocks with still-strong profit growth and no earnings estimate cuts, such as PTT, PTTGC, ADVANC, TRUE, AMATA, GULF, GUNKUL, and WHAUP; and bargain hunting in stocks whose profits have passed their trough and are expected to recover in the second half, such as CBG, ERW, CPF, and BTG.

Bualuang Securities expects the Stock Exchange of Thailand index to climb to 1,700 points by the end of 2026, supported by foreign fund inflows projected to reach 160 billion baht in net buying for the full year. This follows net purchases of around 70 billion baht since the start of the year, driven by strong earnings growth among listed companies, particularly in the energy and petrochemical sectors, and the appeal of high dividend yields in Thai equities. For the second half, the investment strategy focuses on selective stock picking in sectors with positive catalysts. These include power plant operators benefiting from green energy demand, with recommendations for GULF, GPSC, GUNKUL, and WHAUP. The electronics sector is recovering in line with global cycles and AI investment, with KCE as a top pick. Commercial banks offering high dividends are favored, with KBANK and KTB highlighted. Tourism and hotel stocks, where earnings have bottomed out, are represented by ERW and AWC. Consumer goods and food companies poised to gain from hotter weather include CBG and CPF. In portfolio allocation, Bualuang Securities advises investors who can tolerate risk to allocate 60 to 70 percent to equities, split into 30 percent Thai stocks and 70 percent foreign stocks, with the remainder in debt instruments and bonds, primarily focusing on Thai debt securities.

Ms. Naruechon Damrongpiyawut, Chief Executive Officer of Gunkul Engineering Public Company Limited, or GUNKUL, spoke on the ZERO Emission Insights program about the company's Net Zero mission, emphasizing that Thailand's transition to clean energy is not just about protecting the environment, but is the infrastructure for economic security and the key driver of the AI era.

Kingsford Securities estimates support for the SET index today at 1,620 to 1,630 points and resistance at 1,650 points, expecting the index to trend sideways to down. This comes amid escalating tensions in the Middle East and the Russia-Ukraine conflict, along with a sharp drop in US stocks on concerns over rising AI spending and surging oil prices. The Dow Jones fell 0.97%, the S&P 500 lost 1.21%, and the Nasdaq dropped 2.15%, led by communication services and consumer discretionary sectors which fell over 5%. The decline followed Houthi attacks on an oil tanker in the Red Sea, pushing Brent crude to 100.69 dollars per barrel. Meanwhile, the CME FedWatch Tool indicates an 83% chance of a Fed rate hike in September, driving the 10-year US Treasury yield to a high of 4.715% and pressuring growth stocks. Alphabet fell 7% after raising its capital expenditure this year to 195 to 205 billion dollars, and Tesla dropped 14.5% after second-quarter 2026 earnings missed expectations and free cash flow turned negative. On the domestic front, the key focus is Delta's second-quarter 2026 earnings report on Friday, with consensus expecting a profit of around 8.2 billion baht, down 9.3% from the previous quarter but up 77% from a year earlier, and raw material shortages are expected to ease in the third quarter. Additionally, the Energy Policy Committee resolved to cut the ex-refinery diesel price by 2.40 baht per litre from 24 July to 15 August 2026, which is expected to negatively impact refinery group profits by about 7.2 billion baht. Kingsford recommends speculative buys in upstream energy and petrochemicals such as PTTEP, PTT, and IVL, export plays benefiting from a weaker baht like TU, ITC, and AAI, and renewable energy names such as Gunkul, SSP, BBGI, and TGE. Top picks include PRM, whose second-quarter 2026 profit is expected to grow both quarter-on-quarter and year-on-year on recovering vessel utilisation and an increased fleet of 72 ships this year, and True, whose normalised second-quarter 2026 performance is expected to be positive both year-on-year and quarter-on-quarter on improved margins after obtaining new spectrum licences and better cost control.

GUNKUL is preparing to sign power purchase agreements for an additional 262 megawatts soon, mostly wind farm projects, after recently signing PPAs for three projects with a total contracted capacity of 57.2 megawatts. This brings total installed capacity based on equity ownership to 2,121 megawatts. As for new overseas investment plans, the company is waiting for clarity on Thailand's PDP 2026 plan first. For this year's revenue, it remains confident of exceeding ten billion baht, targeting revenue recognition from the EPC business of 5.5 billion baht, with a current backlog of around 4.3 to 4.5 billion baht. Meanwhile, brokers estimate normalized profit for the second quarter of 2026 at 497 million baht, up 38 percent from the same period last year, and have raised the year-end 2026 target price to 5.8 baht per share.

Phillip Securities expects the Thai stock index to trade sideways in a range of 1,640 to 1,665 points, pressured by a 2026 forward P/E of 16.7 times, close to the average since 2020 of 17.1 times, and banking stocks may face sell-on-fact pressure after earnings announcements. However, the TISA project measures will help prevent the index from falling deeply, and a rotation of funds out of banking stocks into real sector stocks is expected for speculation on second-quarter 2026 earnings, which are anticipated to be strong. The investment strategy is divided into four main themes: speculation on second-quarter 2026 earnings in stocks such as AMATA, CPALL, DELTA, HANA, ITC, KCE, MRDIY, MTC, OSP, QH, SAWAD, SCC, STECON, and TIDLOR; energy stocks in BCP, PTT, PTTEP, SPRC, and TOP; speculation on government measures or projects in BJC, CENTEL, CK, CPAXT, CRC, DOHOME, ERW, GLOBAL, HMPRO, LH, MINT, and SCC; and hopes for investment inflows from China in ADVANC, GUNKUL, GULF, ROJNA, WHA, and WHAUP.

Phillip Securities Thailand says support from banks reporting strong results and speculation on second-quarter 2026 earnings are expected to drive positive sentiment, as bank earnings have come in better than Bloomberg consensus. Yesterday, KKP and TTB reported earnings per share exceeding Bloomberg consensus by 15.46 percent and 9.26 percent respectively, raising hopes that other bank stocks reporting today will also deliver positive results. There is also expectation that after the remaining bank stocks report, analysts will raise their target prices. Meanwhile, government measures are seen as another boost, especially for domestic stocks, after the deputy transport minister announced plans to propose revised state welfare card criteria to the cabinet, and the finance ministry will propose assistance for those who lost eligibility through the Thai Chuay Thai Plus 60/40 program in August to September 2026. Additionally, there is anticipation of tourism measures from the tourism ministry, which is preparing to request a central budget of 1.75 billion baht for the Thai Thiew Thai Plus project. The Middle East situation remains a concern. Although Iran said talks with the US can continue, Houthi rebels have declared a naval blockade against Saudi Arabia, pushing West Texas Intermediate crude oil prices up 0.9 percent to close at 83.2 dollars per barrel. Phillip expects the SET index to swing sideways to up within a range of 1,640 to 1,660 points, with a strategy of speculating on second-quarter 2026 earnings across several sectors. One recommended group is stocks expected to benefit from Chinese investment, namely Advanced Info Service, Amata, Gunkul, Gulf Energy, Rojana, WHA Corporation, and WHA Utilities and Power.

Prime Minister Anutin Charnvirakul held talks with Huawei executives, with the company looking to expand its investment in AI and cloud in Thailand, building on cooperation in digital technology and workforce development. The government is ready to support Huawei as a technology partner to elevate Thailand towards an AI-driven economy. Earlier, Chinese Big Tech groups confirmed investment plans in Thailand worth over 70 billion baht this year in high-tech industries such as optical transceiver equipment for data centers, semiconductors, and expanding EV production capacity through the BOI's Thailand FastPass policy. Research views that the data center and digital economy theme in Thailand will continue to attract Chinese capital, a positive for industrial estate groups like WHA, AMATA, PIN, and S, as well as power plant groups such as GULF, GPSC, and GUNKUL.

Globlex Securities expects the Thai stock market this week to fluctuate in a range of 1,610 to 1,650 points, pressured by US chip stocks and tensions in the Middle East. The firm recommends investment strategies to capture the new Power Development Plan, or PDP, highlighting four standout power plant stocks: GULF, BGRIM, GPSC, and GUNKUL. These are poised to benefit from government energy policies aimed at positioning Thailand as a hub for future industries and driving toward the Net Zero target by 2050. On the domestic positive side, the Ministry of Commerce reported that new business registrations in the first half of the year expanded by 2.13 percent, with the online retail group surging 56.9 percent. Meanwhile, the Ministry of Finance is preparing to offer Savings Plus bonds worth 4 billion baht. Key external factors to watch include the US Federal Reserve meeting on July 28th and 29th, and the Monetary Policy Committee meeting number four of 2026 on August 26th.

The policy injecting 200 billion baht under the emergency loan decree to drive clean energy and electric transport systems is positively impacting nine Thai stocks in the solar rooftop and electric vehicle ecosystem sectors. The solar rooftop group that will benefit fully includes GUNKUL from its integrated business covering equipment sales and installation contracting, SOLAR as a panel manufacturer and installation service provider, retail building materials and IT groups such as HMPRO, DOHOME, GLOBAL, and COM7 as distribution channels for ready-made household solar kits, and KTC from low-interest loan measures and installment payments for solar rooftop installation that stimulate card spending. In the electric vehicle ecosystem group, NEX benefits the most in the electric bus and truck segment, EA will ease liquidity concerns and unlock assets from its battery manufacturing and EV assembly plants, while GPSC and GULF benefit from investments in nationwide charging station infrastructure. Analysts recommend a strategy of accumulating on dips or speculating on policy momentum, while cautioning that EV and solar cell stocks often react quickly to policy news. Investors should scale in and avoid chasing prices during sharp short-term rallies.

Naruechon Damrongpiyawut, Chief Executive Officer of Gunkul Engineering, revealed that a subsidiary has signed power purchase agreements for three additional renewable energy projects with a total capacity of 57.2 megawatts, adding to the long-term revenue backlog and reinforcing the growth of the clean energy business as planned. Meanwhile, Chuwit Jungthanasomboon, Chief Executive Officer of Northeast Rubber, sees a positive second-half outlook from strong natural rubber demand in China and India, while global output is constrained by weather, keeping rubber prices likely to remain stable at appropriate levels. The company is therefore moving forward with tight cost and inventory management, targeting revenue of 32 billion baht in 2026. Pipat Sutthiwisesak, Chief Operating Officer of Kethis Bioethanol under Kaset Thai International Sugar Corporation, disclosed that the company has signed a contract to produce 99.95% pure alcohol for the Excise Department's Liquor Organization, marking another important step in expanding the business into the food, beverage, and pharmaceutical markets, increasing opportunities to generate revenue from value-added products in the future. Julia W. Petchpaisit, Chief Executive Officer of Panel Plus Matic Solutions, is confident that performance will begin to recover from the third quarter onward after the new factory reaches full capacity, enhancing production capability, with plans to penetrate the data center, medical business, and cleanroom markets to create a new S-curve, targeting revenue of 400 million baht within three years. Piti Tantakasem, Chief Executive Officer of TMBThanachart Bank, revealed that in the first half of 2026, the bank posted a net profit of 10.683 billion baht, with asset quality remaining stable and non-performing loans flat for seven consecutive quarters, while also completing a share buyback deal one year ahead of schedule, helping to enhance long-term shareholder returns. Chalerm Harnpanich, Chief Executive Officer of Bangkok Chain Hospital, disclosed that the company has signed a memorandum of understanding with Ratchavej Ubon Ratchathani Company Limited to study the feasibility of investing in expanding the hospital network to Ubon Ratchathani province, serving patients in the area, the lower northeastern region, and neighboring countries, with a conclusion expected within the third quarter. Finally, BCPG reported that electricity sales volume in the second quarter of 2026 declined due to scheduled maintenance shutdowns of natural gas power plants in the United States. However, the renewable energy business in Thailand and Laos still helped support the overall picture well, from hydropower, solar, and the Monsoon wind project, which began recognizing full-quarter revenue, reflecting that the revenue base from renewable assets continues to play an important role in driving the company's growth.

Power plant stocks surged, led by GULF which jumped 7%, as investors speculated on a new energy investment cycle under the PDP 2026 plan, where the government pushes for 70% clean energy and opens the way for direct PPAs to support long-term growth. UBS raised its target price for GULF to 82 baht and named it a top pick, while several brokers recommend an overweight stance on the power plant sector. GULF is currently evaluating investments in renewable energy power plants in the UK and Europe across multiple projects, and plans to issue 20 billion baht in bonds late this year to develop domestic projects. Meanwhile, GUNKUL received a rising star recommendation from InnovestX with a target price of 5.80 baht, and GPSC and BGRIM also benefited fully.