The share price of STECON Group Public Company Limited (SET: STECON) at the closing on Tuesday was at THB 4.94, increasing by THB 0.68 or 15.96%.
KGI Securities (Thailand) expects the STECON to return to profitability in 1Q25 due to the supporting factor from interim dividend from Gulf Energy. Meanwhile, the company is also examining investment structure, especially in the Yellow and Pink Line projects, which may change from associated company to related company to ease the effect from profits or losses recognition in the company performance.
Furthermore, there are also other factors that may aid the company’s recovery, such as compensation from the insurance company for the Bueng Nong Bon project, and final authorization for the development of U-Tapao International Airport with UTA joint venture (U-Tapao International Aviation Co., Ltd.)
While STECON may have suffered from short-term heavy losses, the company has a potential for recovery, but it would depend on investment restructuring and authorization for the ongoing projects.
