Maybank Securities Thailand has highlighted in its analysis that CH. Karnchang Public Company Limited (SET: CK) currently holds a project backlog valued at THB 220 billion. CK is also anticipating additional projects from its subsidiary, Bangkok Expressway and Metro Public Company Limited (BEM), in 2025.
These projects include: 1) the double-deck expressway project valued at THB 35 billion, expected to be finalized and proposed to the Cabinet by early 2025, and 2) the southern Purple Line electric railway project from Tao Poon to Rat Burana (M&E works) valued at THB 27 billion, anticipated to conclude by the end of 2024 and be submitted for Cabinet approval in 1Q25. These additions will increase CK’s project portfolio to THB 280 billion, supporting revenues of THB 40-50 billion over the next 5-6 years.
CK’s earnings for 2024-2026 are expected to grow significantly by 30%, 15%, and 24% year-on-year, respectively, with 2026 projected to set a new profit record of THB 2,711 million. Several major projects are anticipated to be submitted for Cabinet approval for bidding by late 2024 and 2025. These include the Red Line railway extensions, dual-track railways, motorways, and Suvarnabhumi Airport expansions, totaling an approximate value of THB 700 billion. The strategic target price recommended is THB 27.50.
