On Friday at 11:57 AM (Bangkok time), the share price of BTS Group Holdings Public Company Limited (SET: BTS) jumped by 4.39% or THB 0.25 to THB 5.95, with a trading value of THB 311.58 million.
Bangkok Expressway and Metro Public Company Limited (SET: BEM) soared by 4.76% or THB 0.35 to THB 7.70, with a trading value of THB 779.01 million.
Kasikorn Securities (KS) stated that the increases in BTS and BEM share prices were triggered by the announcement regarding the proposed 20-Baht flat fare for Bangkok’s mass transit system, known as BTS Skytrain, plan by Suriya Jungrungreangkit, Thailand’s Deputy Prime Minister and Transport Minister.
The minister indicated the potential implementation of the measure, with the budget allocated for the initiative spanning from September 2025 to the end of the current government’s term in 2027, totaling around THB 16 billion. The allocation of the budget for BTS and BEM is anticipated to remain consistent with their current level of funding, with passenger traffic expected to rise but specific figures still pending.
Under the proposed 20-Baht policy, BTS is likely to receive more budget compared to BEM since the average fare for the BTS Green Line falls around THB 32-33 per trip. With the implementation of the new policy, the government will compensate for the variance by approximately THB 12-13 per trip.
As for BEM, the MRT Blue Line’s average fare ranges between THB 27-28 per trip, resulting in an offset payment of about THB 7-8 per trip.
After the policy was first introduced on the SRT Red Line (Bang Sue – Rangsit) and the MRT Purple Line (Tao Pun – Khlong Bang Phai), there was a 30-40% surge in passenger numbers. The analyst anticipated a comparable pattern for the Green, Yellow, Pink, and Blue lines upon implementation.
Meanwhile, the analyst also noted that the government is not expected to fully cover the compensation payment, as both private entities stand to gain from the rising passenger numbers.
Kasikorn Securities has designated price targets for BTS and BEM at THB 4.67 and THB 11.20, respectively. This projection does not factor in the prospective Double Deck project, which has the potential to elevate the share prices by an additional THB 1.50. Further clarity on the project is anticipated in the upcoming year.
