Most equities in Thailand’s construction services sector have risen in the morning session on Tuesday after the Transport Ministry requested a budget of THB324 billion for 2023 to be earmarked to several mega-infrastructure projects.
The share price of Sino-Thai Engineering Public Company Limited (SET: STEC) rose THB0.50/share or 3.45% to THB15.00/share, with a trading value of THB314 million.
The share price of Nawarat Patanakarn Public Company Limited (SET: NWR) rose THB0.03/share or 2.86% to THB1.08/share, with a trading value of THB31 million.
The share price of Ch. Karnchang Public Company Limited (SET: CK) rose THB0.40/share or 1.76% to THB23.10/share, with a trading value of THB360 million.
The share price of Unique Engineering and Construction Public Company Limited (SET: UNIQ) rose THB0.10/share or 1.60% to THB6.35/share, with a trading value of THB6 million.
The share price of Italian-Thai Development Public Company Limited (SET: ITD) rose THB0.02/share or 0.90% to THB2.24/share, with a trading value of THB48 million.
DBS Vickers Securities said this morning’s surge in construction equities followed news that the Ministry of Transport had requested a budget of THB324 billion for 2023 to improve the country’s transportation infrastructure system. As a result, speculation flourished into the construction sector. DBSVS is bullish on construction equities.
DBSVS recommends investors to “BUY” CK (TP: THB27.00) and STEC (TP: THB18.00). DBSVS said that CK still has room for more backlog and that both subsidiaries, Bangkok Expressway and Metro (SET: BEM) and CK Power (SET: CKP) are profitable.
For STEC, DBSVS stated that despite the fact that STEC has a sizable backlog, adding new jobs will enhance profitability.
