Construction stocks in the Thai stock exchange edged higher on Tuesday ahead of the cabinet meeting in the morning that is expected to discuss a proposal for three mega projects worth THB 93.7 billion.
As of 11:03 local time in BKK on September 17, 2024, the share price of CH.Karnchang Public Company Limited (SET: CK) rose 3.48% to THB20.80 per share.
Sino-Thai Engineering and Construction Public Company Limited (SET: STEC) gained 3.13% to THB9.90 per share.
Italian-Thai Development Public Company Limited (SET: ITD) increased 1.45% to THB0.70 per share.
Nawarat Pattanakarn Public Company Limited (SET: NWR) hiked 4.35% to THB0.24 per share.
Meanwhile, Seafco Public Company Limited (SET: SEAFCO) and Unique Engineering and Construction Public Company Limited (SET: UNIQ) gained 0.91% and 0.66%, respectively to THB2.22 and THB3.04 per share.
Maybank Securities (Thailand) (MST) wrote in its note of daily stock picks, stating that CK’s earnings in 2024/25/26 are expected to grow by 30%, 15%, and 24% YoY, respectively. Especially in 2026, profits are forecasted to reach a new record high of THB 2.711 billion. The company is expected to secure additional projects from its subsidiaries, boosting the backlog into a new S-curve, which will provide upside to the current estimates.
2023 earnings are anticipated to hit the highest point of the year, supported by profit contributions from its subsidiaries, CKP and BEM. Additionally, there is a positive sentiment from the accelerated push for government project tenders. Today, the Minister of Transport revealed that a proposal for three mega projects worth THB 93.7 billion is being prepared for the Cabinet’s consideration.
The stock price has declined by 13% over the past four months due to political concerns, which have now subsided. The stock is currently trading at a PER of 17.7x, below its 5-year average by -1.4 S.D., making this an attractive accumulation point.
