Pylon Public Company Limited

The Constitutional Court has ruled that the Election Commission's use of barcodes and QR codes on constituency MP ballots on 8 February 2026 does not violate the constitution, after the Ombudsman filed a petition arguing that the codes could be traced back to individual voters and would breach the principle of secret voting. The court found that in practice tracing is extremely difficult and that adequate safeguards are in place. That election therefore remains valid and does not need to be rerun, and the court merely recommended considering alternative security measures for future elections. The outcome removes the most severe scenario the capital markets had feared, namely a nationwide annulment of the election leading to a political and policy vacuum. With the ruling of no wrongdoing, it is expected to be positive for overall market sentiment and for foreign investor confidence thanks to reduced political risk, especially for large-cap stocks with high foreign holdings and sectors that depend on continuity of government policy, such as construction contractors, power, industrial estates and banks, since the government can continue administering the country as normal. The investment themes that benefit most include industrial estates AMATA and WHA, power producers GULF, GPSC, BGRIM and GUNKUL, contractors STECON, CK, PYLON and INSET, banks KBANK, KTB and KKP, and component makers DELTA and HANA. Meanwhile, in overall trading yesterday, the Thai stock index closed at 1,594.30 points, down 8.07 points, while Thai Airways, or THAI, closed at 6.05 baht, down 0.10 baht or 1.36%, amid a backlog of more than 5,600 pieces of unclaimed baggage. Thai Airways management explained that the main cause was a shortage of manpower, especially baggage handling teams and staff holding ground operation licences who were affected by flooding and unable to travel to work. In addition, Bangkok is Thai Airways' main aviation hub, so when a large number of employees are affected at the same time, the operating system comes under heavy pressure. The issue arose while Thai Airways is pressing ahead with its rehabilitation plan and its operating results have begun returning to profit. What the market and investors must therefore monitor from here on is not just the numbers in the financial statements, but also the efficiency of the operating system and the ability to cope with a crisis.

Kasikorn Securities has maintained its Buy rating on PYLON, or Pylon Public Company Limited, with a target price of 5.20 baht, viewing piling work as entering an upcycle driven by data center projects and public infrastructure schemes. The call followed the KS-C-Series event titled Navigating the Piling Upcycle and Data Center Expansion on September 23, which featured Dr. Chanes Saengarayakul, the company's Chairman, as speaker and drew 21 institutional investors. Management guided that excavation volume in the third quarter of 2026 will reach 100,000 cubic meters, compared with 77,900 cubic meters in the second quarter of 2026, and expects third-quarter 2026 revenue of 531 million baht, up 40% year on year and 28% quarter on quarter, while normal profit is forecast at 115 million baht, up 85% year on year and 45% quarter on quarter, with a gross margin of 32%. For 2027, GPM is expected to remain high at around 25%, driven by data center projects, the Double Deck elevated expressway project worth 35 billion baht, and the M5 motorway worth 30 billion baht. Together, those two projects could generate roughly 4.6 billion baht in piling work, and if the work is split evenly among the three registered piling contractors, that would mean about 1.5 billion baht per player, against PYLON's annual revenue-generating capacity of 2 billion baht. PYLON has recently signed NDAs for four data center projects and expects bidding to open soon, and if several projects start at the same time, the value of the work could exceed the company's annual revenue-generating capacity. The stock currently trades at a 2026 forward PER of just 9.75 times and offers a dividend yield of 9.9%, against a historical average of 16 times, while SEAFCO trades at a PER of 7.3 times and offers a dividend yield of 6.9%. Key risks include delays in government budget disbursement and a slow recovery in private-sector investment.

Foreign investors returned to buying Thai stocks, with net purchases of 52.68226 billion baht from the start of the year through September 22, comprising 6.60989403 trillion baht in buys and 6.55721177 trillion baht in sells. In September alone, net buying reached 1.31328 billion baht, from 626.56138 billion baht in buys and 625.24810 billion baht in sells, marking the highest foreign buying in two months and making the Thai stock market the most sought-after in ASEAN. The supporting factor came from Meta's launch of a new AI model with higher processing efficiency, offered free of charge, which the market expects will extend its advertising business and accelerate demand for AI CAPEX, benefiting Thai component stocks, especially DELTA and HANA. Meanwhile, Infra Tech stocks drew support from the NBTC's proposal for a data center board to set new investment criteria, including requiring operators to have power purchase agreements and water supply certificates, to use domestic materials no less than 50%, and to add sustainability requirements. This is expected to boost industrial estate stocks such as AMATA and WHA, power stocks such as GULF, BGRIM and GUNKUL, bank stocks such as KBANK, KTB, KKP and BBL, as well as contractor stocks such as STECON, PYLON and INSET. At the same time, the Cabinet meeting approved extending the Thai Help Thai Plus 40/60 Phase 2 project by another 2 months, from October 1 to November 30, 2026, with a total budget of 42.69 billion baht, and approved an additional 700 baht per person in product purchase credit for state welfare cardholders for October only, bringing the total injection to 1,000 baht per person. This measure is expected to benefit retail stocks such as CPAXT, BJC and CPALL, as well as consumer goods stocks such as CBG and OSP, in a second-round effect.

Krungsri Securities reported that the setting of new Data Center investment criteria is making continuous progress. Most recently, the NBTC proposed to the Data Center Board three key conditions: operators must have adequate utilities, meaning they must have power purchase agreements, or PPAs, and sufficient water supply service certifications; they must use domestically produced structural materials, construction work and electrical systems at a proportion of no less than 50% to support Thai industry; and a sustainability requirement, or Go Green, must be added, requiring operators to have guidelines to reduce environmental impact, cut carbon emissions and have electronic waste management plans. The research department assesses that this rapid and clear adjustment of the criteria is positive for Thailand's economic direction in the period ahead, and the Local Content condition will help circulate Data Center investment money into other industries. Stocks expected to gain positive sentiment include Infra Tech theme stocks such as AMATA and WHA, power group stocks GULF, BGRIM and GUNKUL, banking group stocks KBANK, KTB, KKP and BBL, and construction group stocks STECON, PYLON and INSET.

Pylon Public Company Limited, or PYLON, a contractor specialising in foundation works and bored piles, expects its third-quarter 2026 results to improve on the second quarter of 2026, when it posted a net profit of 80.15 million baht and construction service revenue of 415.13 million baht. The company currently has a backlog worth 1.5 billion baht and expects to recognise more than 50% of that backlog as revenue this year. Dr. Chanesawang Saengarayakul, the chief executive officer, told "Than Hoon" that demand for piling work remains high, particularly piles for data centre projects, which are growing clearly, with a noticeably larger number of projects coming in for evaluation and pricing compared with the previous month. Most of these are expected to begin construction within the next few months, and the company recently won work through a major contractor, STECON. As for public infrastructure work such as expressway projects, clear progress or tender announcements are expected in 2027, while no clear new construction plans have emerged for power plant projects under the PDP. The company expects its 2026 results to beat its target of roughly 10-15% growth in total revenue. Competition for construction work in 2026 remains at a healthy level, though 2027 could prove more challenging as work on the Orange Line electric railway comes to an end. On cost management, existing projects already reflect actual costs, and new bids have been priced in line with current costs. Oil prices have passed their peak and steel prices have not yet risen, but risks from the war situation that could affect oil supply still need to be monitored.

The Federal Reserve's monetary policy committee voted unanimously to raise the policy interest rate by 0.25% to a range of 3.75–4.00%, as the market expected, while its Dot Plot signaled one more 25 basis point hike to 4.00–4.25% by the end of this year, even as the overall picture reflects a High for Longer stance. Efinancethai gathered the views of analysts from four houses. Krungsri Securities expects the SET to rebound today, with resistance at 1,575 and 1,583 points and support at 1,550 and 1,545 points. Finansia Syrus Securities expects the SET Index to move Sideways to Sideways Up in a range of 1,555–1,572 points. Pi Securities assesses a range of 1,550–1,580 points, and Aira Securities says the market has already priced in the concerns. Sectors seen benefiting include commercial banks, with standout picks KBANK, BBL, KTB, SCB and KKP; exporters and electronic components, DELTA, HANA, TU and ITC; Value Play and medical stocks, BDMS, BCH and BH; groups that get a psychological boost from softer crude oil prices, such as airlines AOT, THAI and BA, construction materials and contractors TASCO, STECON and PYLON, power and utilities GULF, GPSC and BGRIM, and hotels AWC and ERW. Stocks seen under pressure include groups carrying high financial costs, such as utilities and power, and industries tied to falling oil prices, such as oil and refineries, amid psychological pressure after Brent crude fell sharply to US$105 a barrel.

Construction contractor stocks are supported by strong second-quarter 2026 results, with STECON posting net profit of 910.96 million baht, up 77.89% from 512.08 million baht a year earlier. PYLON reported net profit of 80.15 million baht, up 36.37% from 58.78 million baht. RT had net profit of 25.22 million baht, up 91.77% from 13.15 million baht in the same period last year. TEAMG posted net profit of 60.98 million baht, up 29.32% from 47.16 million baht. These results reflect the gradual recovery in construction activity and revenue recognition from ongoing projects. A key supporting factor is the acceleration of government budget disbursement. The Ministry of Finance revealed that from the start of the fiscal year to August 31, 2026, the government has disbursed 3.39 trillion baht of the annual budget for 2026, representing 89.64% of the total budget of 3.78 trillion baht. Meanwhile, investment trends in data centers and AI are expected to be a major driver, with cumulative applications for investment promotion in digital infrastructure exceeding 1 trillion baht, potentially generating construction and systems work worth about 150 billion baht over the next 2-3 years. STECON is one of the contractors likely to benefit directly, while PYLON will benefit from increased demand for foundation works.

The Cabinet has approved three projects under the second phase of the southern dual-track railway, with a total investment of 107 billion baht. Construction is expected to begin in the third quarter of 2027. Meanwhile, public and private sector projects are boosting contractors, especially foundation works which offer high margins. Analysts recommend CK, STECON, PYLON, and SEAFCO.

Pylon Public Company Limited, or PYLON, reported second-quarter 2026 net profit of 80.15 million baht, up 36.36% from a year earlier, marking its highest level in 25 quarters. Contract revenue totaled 415.13 million baht, up 6.82% from the same period last year, driven by revenue recognition from 11 public and private sector projects. Net profit margin was 19.23%, compared with 15.03% a year earlier, and the revenue mix between retaining wall work and bored piling work stood at 38 to 62. The company's backlog as of August 13 was 1.5135 billion baht, and it expects full-year performance to beat its target. It also announced an interim dividend of 0.15 baht per share, with the stock trading ex-dividend on August 27, 2026, and payment on September 11, 2026.

Finansia Syrus Securities, or FSS, stated that Pylon Public Company Limited, or PYLON, posted strong net profit in the second quarter of 2026, stable from the previous quarter and up 32% from the same period last year, supported by a higher gross profit margin despite softer revenue. The trend for the third quarter of 2026 is expected to see profit potentially hitting a new high, as revenue from the Central Embassy construction project is gradually recognized. FSS maintains a buy recommendation on PYLON with a target price of 4 baht.

PYLON signals a strong second half, with work in hand supporting revenue continuity through the end of 2026 and into early 2027, driven by private-sector jobs and data centre projects. Additional work may also be secured late this year. Managing Director Dr. Chanes Saeng-arayakul said the company is watching for government project auctions in 2027 more than plan announcements, and expects total revenue in 2026 to grow 10 to 15 percent. Krungsri Securities estimates first-half net profit at 281 million baht, up 33 percent from a year earlier. The research team views the second-half trend as still bright, as revenue from the Central Embassy 2 project begins to be fully recognised in a full quarter. The company has a backlog of about 1.5 to 1.6 billion baht, has secured new work worth another 200 to 300 million baht, and is bidding for projects with a further 200 to 300 million baht opportunity. The broker maintains a buy rating with a target price of 4.50 baht.

Krungsri Securities says True IDC is in talks to borrow around two billion US dollars, or about 67 billion baht, to invest in a new data centre on the outskirts of Bangkok, according to a Bloomberg report. The research team estimates the sum represents 0.35 percent of GDP and will be positive for the Thai stock market, as well as stocks in related investment themes. Among the groups expected to benefit first are banks KBANK and KTB, contractors STECON, PYLON, and INSET, along with TRUE as a company within the same group.

Krungsri Securities estimates that PYLON will post a net profit of 78 million baht in the second quarter of 2026, up 32 percent from a year earlier, with revenue expected at 475 million baht, a 21 percent increase year-on-year, and gross margin rising to 24.8 percent from 24.5 percent in the second quarter of 2025. The research team maintains its full-year 2026 profit forecast at 281 million baht, representing 33 percent growth from the previous year, with the first half expected to account for 55 percent of the full-year estimate. The company currently has a backlog of approximately 1.5 to 1.6 billion baht and secured an additional 200 to 300 million baht in new work from six to seven projects in the past quarter. Meanwhile, the data center market presents foundation and piling work valued at around 40 to 50 billion baht over the next five to seven years, an area where PYLON has already gained experience through several projects. The recommendation remains buy with a target price of 4.50 baht.

The committee studying the Land Bridge project concluded that the transport system development linking the Gulf of Thailand and the Andaman Sea has a low probability of proceeding, due to budget burden risks and broad uncertainties. This direction aligns with the prime minister's earlier order to delay the project. Research analysts assess that the shift in transport infrastructure investment will focus on missing links, the Thai-Chinese railway, and certain new deep-sea ports proposed by the private sector, pointing to clearer public-private cooperation. Fiscal constraints mean the government must rely more on private investment, and scaling down projects from very large to medium or small will enable faster and more efficient investment. This trend is positive for the Thai stock market, boosting investment momentum and supporting upside potential for gross domestic product. Benefiting stocks include banking names such as KTB and KBANK, contractors like STECON and PYLON, industrial estate groups such as AMATA and WHA, and logistics players seeking new investment projects like BEM and BTS.

Krungsri Securities, or KSS, assesses that the Thai stock market is in a consolidation phase, with resistance framed at 1,650 and 1,665 points and support at 1,630 and 1,626 points. This comes amid pressure from Brent crude oil prices surging past $100 per barrel, the US 10-year Treasury yield climbing to test 4.7%, its highest in 1 year and 7 months, and the baht weakening to a 15-month low of 33.82 per dollar. Also weighing are US import tariff measures under Section 301 at rates of 10 to 12.5% on 60 countries, effective from 24 July 2026, though the impact on Thailand is limited as key exports like electronic parts and semiconductors are not covered. KSS expects stocks in the energy, energy security, and commercial banking sectors to be the main pillars supporting the index. It recommends standout energy stocks including PTT, PTTEP, BCP, TOP, and SPRC. In banking, it recommends KBANK and KTB. In telecoms, it recommends ADVANC and TRUE. In construction, it recommends STECON, PYLON, and INSET. In industrial estates, it recommends AMATA and WHA.

Investment promotion applications filed with the BOI in the first half of 2026 totaled 1.4 trillion baht, a 37% increase compared to the same period last year. In the second quarter, applications reached 0.46 trillion baht, which, while slowing from the previous quarter, remained above the quarterly average of 0.33 trillion baht seen over the past four to five years. The growth was driven by large-scale investment projects in AI and data centers, as well as other targeted industries such as electronics, electrical appliances, and food processing. Krungsri Securities Research views the rise in BOI applications as positive for the country's economic outlook and the Thai stock market under the investment cycle theme, particularly for businesses in new global S-curves like AI, data centers, and green energy. Coupled with the government's investment acceleration measures, projects are expected to be approved and implemented more quickly, benefiting overall economic activity and supporting supply chain sectors such as industrial estates like AMATA, construction contractors like STECON and PYLON, and banking groups like KBANK, KTB, and KKP.