STECON Group Public Company Limited

Research by Asia Plus Securities assesses that a water management megaproject with a combined value of 165,000 million baht will support the growth of the construction contracting sector over the medium to long term. The project aims to cut flood damage by about 16,930 million baht per year and reduce flooded area by 3.48 million rai. Construction is expected to begin in 2027 and take eight years. Among the stocks expected to benefit, Asia Plus names CK as its top pick with a target price of 24 baht on the prospect of winning work directly, while STECON carries a target price of 23 baht on expectations it will benefit from large project contracts. Also in the frame are UNIQ, which has opportunities from large project work, and ITD, which is involved in earthworks and drainage systems. In the construction materials group, SCC, SCCC and TPIPL stand to benefit from project demand for materials. Factors to watch include the project's funding sources, land expropriation, the timing of bidding, and contract signing, all of which will affect progress and the chances that construction companies win work from the project.

Trinity Securities assesses that the Thai stock market index in the fourth quarter of 2026 will fluctuate within a range of 1,500-1,700 points, noting that the current index level has fallen into a zone where reward clearly outweighs risk. For those who still hold Thai stocks at low levels, or who need to invest to reduce taxes this year, the current index area is seen as an opportunity to gradually accumulate (Buy the Dip). As for the investment strategy for the fourth quarter, the research department recommends a defensive approach focused on its quarterly recommended stocks, namely BTG, TFG, AWC, ERW, CRC, COM7, STA, TVO, AMATA and STECON.

Three securities firms have shared their outlooks for the Thai stock market in the final stretch of the year, along with their SET index targets and top stock picks for investment in the fourth quarter of 2026. Each has a different view and set of recommendations based on fundamentals and market trends. InnovestX has set a SET index target of 1,715 points for 2027 and named its top picks for Q4/2026: AMATA, CENTEL, CRC, KTB and PR9. ASPS estimates a SET index target of 1,720 points for 2026 and selected CPN, CBG, THAI, BDMS, BBL, COM7, STECON and GUNKUL as its top picks. KSS expects the SET index to trade in a target range of 1,680 to 1,750 points in 2026 and highlights TOP, PTTGC, SCC, IVL, GULF, DELTA and KBANK as its top picks.

KGI Securities unveiled its top stock picks for October 2026, recommending accumulation of stocks in the private investment and data center themes, comprising DELTA, GULF, WHA, STECON and CENTEL. The research team believes the market in October is likely to rebound, as the market has already priced in much of the global economic risk, including uncertainty in the Middle East and surging bond yields in major markets worldwide. It expects the SET Index to recover, and sees a high chance the Fed will pause rate hikes temporarily after August core PCE came in below consensus. It also sees a fairly high possibility that the US and Iran will reach some form of ceasefire agreement soon. On domestic factors, the Thai government began rolling out the final phase of consumption stimulus measures today and will shift its focus to stimulating private investment, including PPP-model infrastructure projects and FDIs. As for STECON, it signed new project contracts worth 10 billion baht, equal to 20% of its 2026F target of 50 billion baht, lifting its backlog to 116.4 billion baht, and it expects to win another 70 billion baht in projects, mainly data centers and power plants. Meanwhile, GULF has identified data center demand of more than 2GW of capacity expected to secure Direct PPAs, and the PDP2026 plan is expected to add another 20-30GW of renewable energy capacity and another 20GW of gas-fired capacity. For CENTEL, the research team remains positive after updating information with management, noting that RevPAR booked in Q3/2026F recovered year-on-year by a mid-single-digit rate from -10% in Q2/2026, and is expected to improve further during the high season in Q4/2026F. The recommended portfolio for September fell 2.6%, underperforming the overall market, which declined 2.0%.

Asia Plus Securities estimates the SET index target at the end of 2026 at 1,720 points, based on an assumption of 2026 earnings per share of 95 baht per share. It notes that the overall investment picture in the fourth quarter faces the risk of accelerating inflation from the Middle East war that has dragged on for more than 7 months, which pressured the average September 2026 WTI crude oil price to 95.6 dollars per barrel, up 50% compared with the previous year. Meanwhile, the United States is collecting import tariffs from trading partners at an effective rate as high as 12.5% to 19%, up from the previous 2% to 2.5%, and investment in data centers and AI infrastructure has pushed prices of software and computer equipment up 25.4% compared with the previous year, hitting a new high. On the Thai economy, the ratio of public debt to GDP stands at 67.45%, close to the fiscal discipline ceiling of 70%, while the impact of flooding is estimated at approximately 5 billion to 10 billion baht, which could drag third-quarter GDP growth down to 2.2% to 2.5%. The research department has adjusted its strategy from index selection to selective stock selection, focusing on stocks that benefit from the high season and the low base effect, namely CPN, CBG, THAI, BDMS, BBL, COM7, STECON, and GUNKUL, and recommends holding cash at around 10% to 15% of the portfolio.

The Cabinet has approved the Chai Nat–Pa Sak–Gulf of Thailand flood diversion canal project, with total investment of approximately 165 billion baht, one of Thailand's largest megaprojects in years. The project aims to create a new water diversion route from the upper Chao Phraya basin directly to the Gulf of Thailand, improving drainage efficiency and reducing flood risk in the central region, Bangkok, and surrounding provinces. The government estimates that once completed, it will reduce flooded area by about 3.48 million rai, add roughly 1.555 billion cubic metres of water storage capacity, and cut economic damage from flooding by about 16.93 billion baht per year. Under the implementation timeline, feasibility studies and design are set for 2026, with construction of phase one beginning in 2027. From 2028 to 2030, the drainage canal, sluice gates, and land acquisition will be carried out. From 2031 to 2033, main structures will be built and systems tested, before full operation in 2034. Asia Plus Securities said the construction contracting group will be the first direct beneficiary, with CK, STECON, and UNIQ standing out as stocks with strong potential to win contracts, while ITD is likely to benefit from its expertise in earthworks and drainage systems. The construction materials group, including SCC, SCCC, and TPIPL, will see support later in the materials usage cycle. Factors to watch are clarity on funding sources, the land acquisition or expropriation process, and the timetable for opening bidding on each contract, with delays in these steps posing a key risk that could push the transmission of benefits later than planned.

The Cabinet approved the use of the 2026 central budget amounting to 4.73 billion baht to assist flood victims in 24 provinces. The Budget Bureau proposed that the Bangkok Metropolitan Administration first use about 2.97 billion baht of its own accumulated funds to avoid duplicate payments. Meanwhile, per-household payments, which the Prime Minister has capped at 9,000 baht, must pass eligibility criteria and a committee. The Board of Investment issued relief measures for operators affected by the floods, granting import duty exemptions for machinery brought in to replace damaged machinery and allowing damaged assets to be written off without tax liability. Stock market gurus noted that the relief money, at about 0.01% of GDP, still requires additional measures to be monitored, while funding for water management projects, sized at 0.87% of GDP, is expected to boost short-term sentiment. Investment theme stocks are led by contractors CK and STECON as well as banking stocks. Meanwhile, the Thai stock market yesterday saw the SET INDEX close at 1,559.01 points, down 36.39 points, on a wave of selling driven by concerns over US bond yields, flooding in Bangkok and several provinces, foreign fund flows, and a weakening baht. The 10-year US bond yield rose to around 5.2–5.25%, pressuring banking stocks, especially KBANK and KTB, while DELTA, KTB, KBANK, and SCC were sold on concerns over flooding in the Chao Phraya basin. In addition, SET50 and SET100 will rebalance index weightings at the end of the quarter, with DELTA expected to gain weight from passive funds of about 2 billion baht. The chairman of the National Broadcasting and Telecommunications Commission submitted a letter requesting leave from the board meeting on October 1–2 amid a dispute over the status of the position following a Central Administrative Court ruling, paving the way for commissioners to elect an acting chairman to serve in his place. This is assessed to help reduce policy risk, open the way to expedite approval of the Phase 3 USO budget, and provide positive sentiment for lowest-bid stocks such as GST, INSET, TRUE, and ITEL.

Today's standout stocks span several key themes. Thai Airways is racing to clear more than 5,600 pieces of unclaimed baggage within 72 hours after 100% of its flights were delayed and it had to cancel a combined 60 flights per day. The airline has brought Airports of Thailand, or AOT, onto its team, while mobilising military personnel and hiring outside contractors at full capacity. Meanwhile, PLANB shares jumped nearly 7% after its board approved subscribing to 46.28% of iCare's capital increase, worth 860 million baht, extending its mobile insurance business in partnership with COM7. Analysts expect the deal to add 200 million baht in recognised profit per year, creating 11-13% upside. They recommend buying with a target price of 8.10 baht, calling it a Top Pick in the sector. MMM has launched mortgage, sale-with-right-of-redemption, and housing loans through its subsidiary Keha Songkhro Capital, aiming to grow its loan portfolio to 700 million baht by 2028 under its Jump+ plan. TASCO confirmed it holds 1.52 million barrels of Venezuelan crude oil inventory, enough to last through the first quarter of 2027, helping lift asphalt output by 10-15%. Brokers recommend buying with a target price of 18.50 baht and expect a 5.9% dividend yield. STECON expects 2026 revenue to exceed its target of 35 billion baht, with brokers forecasting 2027 revenue could reach 50-60 billion baht, driven by data centres, state megaprojects, and its infrastructure investment business.

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.

Pakpoom Srichamni, Chief Executive Officer of Stecon Group Public Company Limited, or STECON, disclosed that the company expects total revenue in 2026 to exceed its target of 35 billion baht, after total revenue in the first half of 2026 already reached 16.787 billion baht, or about 48% of the full-year target. It currently still holds construction work in hand from transportation projects, including the Purple Line electric train and the M6 and M81 motorways, while also tracking opportunities from the M82 project and continuing to bid for new work. The company places importance on data center projects, especially investment by major service providers, or hyperscalers, and is in the process of extending its business from a construction contracting base into the development of and investment in infrastructure, including water, utilities, and energy, in order to increase the share of recurring revenue. Kasikorn Securities stated that STECON currently has work in hand of about 113 billion baht, with management aiming to add approximately 69 billion baht more to its backlog during the remainder of 2026, divided into three data center projects worth a combined 49.8 billion baht, power plant projects worth 16 billion baht, and airport projects worth 3 billion baht. If it wins the work as planned, revenue in 2027 could be 50 billion to 60 billion baht, compared with the research department's current estimate of 37 billion baht, while gross profit margin will be above 7%. Initially, it forecasts normal profit in 2026 at 1.497 billion baht, up 63% year on year, and maintains a Buy recommendation with a fair value of 22.28 baht, selecting the stock as a top pick in the large contractor group.

Securities analysts at KGI Securities (Thailand) Public Company Limited, or KGI, said the Constitutional Court's ruling on September 28 in the case concerning the printing of barcodes on ballots in February's election, finding them not in breach of the constitution, is a positive factor for Thailand's political stability. The court reasoned that the barcodes were designed to track and control electoral fraud, and that the Election Commission has sufficiently strong controls to prevent voter identity data from being linked to vote results. However, the court ordered the Election Commission to avoid using barcodes in future elections. KGI views the ruling as positive for the economy and the stock market, because it allows the current government to continue its work and press ahead with measures to stimulate consumption in the final quarter of 2026, as well as investment stimulus measures such as public-private partnership infrastructure projects and Thailand FastPass in 2027. A key project the government aims to complete is the setting of new criteria for regulating data centre construction, which the cabinet targets enforcing in mid-October 2026. With clearer political stability, combined with the global upcycle in AI and the data centre industry, stocks linked to Thai investment remain attractive, especially construction contractors and industrial estates, as well as stocks with data centre exposure. In the construction contractor group, KGI recommends Stecon Group Public Company Limited, or STECON, for those interested in contractors that take on data centre work, and recommends Ch. Karnchang Public Company Limited, or CK, for investors focused on laggard stocks in more stable traditional projects. In the industrial estate group, it sees WHA Corporation Public Company Limited, or WHA, as likely to react positively to progress on data centre regulatory criteria. Among technology-theme stocks, it continues to recommend Delta Electronics (Thailand) Public Company Limited, or DELTA, and Hana Microelectronics Public Company Limited, or HANA, which it assesses as stocks that can speculate directly on the AI theme more than other stocks in Thailand's electronics group.

U-Tapao International Aviation Company Limited, or UTA, officially received its Notice to Proceed, or NTP, on April 3, 2026, clearing the way to move ahead with the development of the U-Tapao Airport and Eastern Aviation City project in the portions that are ready, after the project was delayed for more than six years, partly due to conditions tied to the high-speed rail project linking three airports. Earlier, the Eastern Economic Corridor Office and UTA signed a joint contract management agreement on January 29, 2026, to allow parts of the project to proceed even though the high-speed rail has yet to reach a clear conclusion. Weerawat Panthawangkul, Chief Executive Officer of UTA, disclosed that the company is preparing investment and reviewing the project's development approach, especially the size of the passenger terminal in the first phase, which under the original plan was set to handle about 12 million passengers a year, compared with the current roughly 300,000 to 400,000 passengers a year and about 2 million a year before the COVID-19 pandemic. The long-term target remains a maximum capacity of about 60 million passengers a year. UTA has already spent more than 6 billion baht on the project for preparation and development before construction began, and it expects infrastructure investment to begin within the next 12 months. If work can start under that framework, the project will take about five more years to develop before opening for service. UTA is a joint venture between Bangkok Airways Public Company Limited, or BA, and BTS Group Holdings Public Company Limited, or BTS, which each hold 40%, while Stecon Group Public Company Limited, or STECON, holds 20%. BTS's investment in UTA falls under its MOVE business. Surapong Laoha-Unya, an executive director and chief of BTS's MOVE business group and a UTA director, said the company is designing, laying out and studying ways to use the area while seeking approval from relevant agencies, preparing an environmental impact assessment, or EIA, and arranging funding sources. The project covers a total area of about 6,500 rai. Most recently, the Cabinet acknowledged the necessary and urgent support measures under a resolution of the Eastern Economic Corridor Policy Committee and assigned the Eastern Economic Corridor Office and related agencies to expedite legal and other measures so they take practical effect by September 30, 2026. The Eastern Economic Corridor Office estimates that if the measures take effect, they will help stimulate about 1.3 trillion baht in private investment within the project over its lifetime, create a total of more than 63,701 jobs, add about 400,000 foreign tourists a year, spur about 20 billion baht in spending in the area once service begins, and add more than 37 billion baht to gross domestic product in the first year of service.

Kasikorn Securities expects the SET Index to swing within a range of 1,580 to 1,630 points this week, after the index returned to stand above 1,600 points last week, supported by Fitch's upgrade of Thailand's outlook from Negative to Stable, strong August export figures, and buying in DELTA on the recovery of global technology stocks. On Friday, the Thai market closed at 1,607.63 points, up 0.32%, driven by heavy buying in electronics and construction. For today, the brokerage estimates the SET Index range at 1,590 to 1,620 points, reflecting short-term negative sentiment from weekend flooding in Thailand and lingering geopolitical risks. It noted that US-Iran geopolitical risk remains a key factor supporting a recovery in oil prices and could add pressure on inflation, the US dollar and bond yields. Domestically, investors must monitor the flood situation, which could weigh on short-term sentiment. Statistics on Thai floods from 2006 to 2024 show the SET fell an average of about 1% in the one month after such events, but the impact this time is expected to be limited, so the pullback is seen as an opportunity to accumulate. On key economic factors, investors should watch ISM and PMI readings, US employment and unemployment figures, and US PCE and Core PCE, which will affect the direction of Fed policy. This week's strategy therefore focuses on stocks with good earnings growth prospects and low risk, with ADVANC, BCH, CPALL and STECON chosen as the top stocks of the week. It set a base price for CPALL at 57.20 baht with a buy recommendation, expecting 2026 profit to grow 9% year on year, and a base price for ADVANC at 385.34 baht, viewing the stock's pullback as bringing its valuation back to an attractive level and lifting its dividend yield to 4.8%.

Shares of Stecon Group Public Company Limited, or STECON, rose 3.19% to 19.40 baht at 11:55 a.m., with trading value of 788.11 million baht. Asia Plus Securities assessed that STECON is among the construction contractor stocks with a chance to benefit directly from the acceleration of public infrastructure investment, after the draft annual budget expenditure bill for fiscal year 2027, worth 3.788 trillion baht, passed deliberation. The bill allocates about 789 billion baht for investment, accounting for 20.8% of the total budget. Meanwhile, the Ministry of Transport is preparing to push forward 262 investment projects covering roads, railways, electric trains, ports and airports, along with nearly 395 billion baht in local-level budgets, which could add construction and maintenance work in the regions. Asia Plus Securities views that the acceleration of investment disbursement and the opening of bids for large projects, especially rail systems, motorways, expressways and logistics infrastructure, will increase the company's opportunities to compete for new work, and maintains its Buy recommendation on STECON with a fair value of 23 baht per share, holding a positive view on the outlook for public investment over the next one to three years. However, the timing of new contract wins still depends on progress in bid openings, contract signings and government budget disbursement.

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.

An analysis of the construction contractor sector by Asia Plus Securities indicates that the passage of the annual budget expenditure bill for fiscal year 2027, worth 3.788 trillion baht, marks the start of a new round of accelerated public investment, with investment spending reaching approximately 789 billion baht, or 20.8% of the total budget. Meanwhile, the Ministry of Transport is preparing to push forward a total of 262 investment projects covering roads, railways, electric trains, ports, and airports. Local budgets of nearly 395 billion baht will help increase construction and maintenance work in the regions. The brokerage views the construction contractor group as the most direct beneficiary and assesses that Ch. Karnchang Public Company Limited, or CK, and STECON Group Public Company Limited, or STECON, are the most closely linked to the acceleration of budget disbursement. It recommends "Buy" on CK with a fair value of 24 baht and "Buy" on STECON with a fair value of 23 baht. For the construction materials group, it views SCC, SCCC, and TASCO as beneficiaries, with TASCO set to gain support from budgets for road and highway network maintenance. Meanwhile, Pi Securities has a consistent view, saying it is beginning to see positive signals for a new round of government auctions. Since the start of 2026, CK has signed new work that is largely additional work from existing projects worth only about 870 million baht, causing its backlog to fall from more than 168 billion baht early in the year to about 146 billion baht at the end of the first half of 2026. However, the direction of new work has become clearer after the Cabinet resolved on September 1, 2026, to approve the continuation of three double-track railway projects with a combined value of more than 106 billion baht, comprising the Chumphon-Surat Thani section worth 36.892 billion baht, the Surat Thani-Hat Yai Junction section worth 61.534 billion baht, and the Hat Yai Junction-Padang Besar section worth 8.371 billion baht. Bidding is expected to open in early 2027. These projects are part of Phase 2 of the double-track railway program, which has six projects in total. Pi Securities views the opening of bidding for double-track railway projects worth more than 100 billion baht as an opportunity for CK to bid for all of them, expecting the three projects to be divided into about five contracts. If it wins new work, this would be upside to Pi Securities' 2027 revenue forecast of 42.134 billion baht, since the forecast does not yet include the new work to come. In addition, CK has the opportunity to win two other large projects related to Bangkok Expressway and Metro Public Company Limited, or BEM: the installation of systems for the Purple Line South electric train, worth approximately 30 billion baht, and the Double Deck expressway project, worth approximately 35 billion baht. Pi Securities maintains its "Buy" recommendation on CK with a fair value of 23.10 baht, based on 1.3 times its 2026 book value.

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.

InnovestX Securities Company Limited expects the Thai stock market to remain volatile and has unveiled four standout stock themes to navigate the SET Index falling below 1,600 points. It estimates support at 1,580 and 1,575 points, with resistance at 1,605 and 1,610 points, and recommends a Selective Buy strategy focused on accumulating shares as prices decline. The first theme covers defensive stocks and high-dividend stocks expected to deliver consistent dividend yields above 5% per year, namely BBL, KTB, HMPRO, AP, SCCC and PTT. The second theme covers stocks benefiting from global economic factors and high bond yields. In the energy group it picks PTTEP, BCP, TOP and SPRC, while in shipping it selects PSL and TTA. High bond yields are a positive factor for banks, namely KTB, BBL and KBANK, as well as life insurers BLA and TLI, after the yield on 10-year US Treasury bonds rose to 5% for the first time in nearly three years. The third theme covers stocks benefiting from government policy, namely GULF, GUNKUL, AMATA and WHA, on progress with the draft PDP2026 plan and policies supporting rooftop solar, while STECON, CK and SCCC fall in the construction and construction materials group. As for economic stimulus measures, CPALL, CPAXT and BJC are seen benefiting from the extension of the Thai Chai Thai Plus program, while CPALL, CRC, ERW, CENTEL and AOT are supported by the Thai Tiew Thai Plus program. DELTA, HANA and KCE fall under the theme of promoting investment in data centers and artificial intelligence. The final theme covers laggard stocks, namely AP, PR9, SAWAD, HMPRO, BDMS, TU, BCH, MTC and TIDLOR, whose second-half 2026 earnings are expected to grow both year on year and compared with the first half of the year.

Finansia Syrus Securities Public Company Limited has upgraded shares of Stecon Group Public Company Limited, or STECON, to "Buy" from "Hold," and rolled over to a 2027 target price of 22.50 baht, based on a target PBV of 1.5 times, or a 2027 PER of 19.6 times. During the day, STECON shares stood at 18.80 baht, up 0.90 baht, or 5.03%, on trading value of 209.72 million baht. Finansia Syrus said the main driver comes from new private-sector contracts, especially three Data Center projects with a combined value of about 50 billion baht, and power plant projects worth about 16 billion baht, which will help new contract value in 2026 reach its target of 50 billion baht and push the backlog to roughly 120 billion baht by the end of 2026. Meanwhile, progress on public investment projects after the Cabinet resolved on September 1, 2026, to approve three southern routes of the second-phase double-track railway, with a combined value of about 107 billion baht, which is expected to go to tender in early 2027, is another supporting factor. On operating results, Finansia Syrus maintained its 2026 normal profit forecast for STECON at 1.48 billion baht, up 47% from the previous year, and raised its 2027-2028 profit forecasts by 44% and 40% to 1.74 billion baht, up 18%, and 1.84 billion baht, up 6%, respectively, on higher revenue assumptions of 50.8 billion baht in 2027 and 53 billion baht in 2028, from about 35 billion baht in 2026, including dividend income from a 10% stake in a Data Center project in Chonburi province, which is expected to begin contributing from the fourth quarter of 2026 at about 180-190 million baht per year. As for the case in which the Data Center committee resolved on September 4, 2026, to delay the construction process and approval of Data Center projects in order to establish common criteria and standards, Finansia Syrus assessed that it will not affect STECON's projects currently under way, since all four projects are located outside Bangkok.

EASTW reported a strong recovery in its second-quarter 2026 results, with net profit of 67 million baht, up 807% year-on-year. Revenue from sales and services reached 968 million baht, an increase of 7.6%, driven by growth across all business segments, including raw water, tap water, and industrial water. The company also benefited from improved energy cost management and more efficient water pumping systems, which lifted gross profit margin to 32.0% from 25.2%. Financial costs declined 13.0% due to gradual debt repayment. The surge in Data Center investment in the EEC area is considered a key new S-Curve for the company, as these facilities require high-quality water for cooling systems. In the first half of the year, revenue from the industrial water business rose 24.1% to 167 million baht, with gross profit up 84.4% to 41 million baht. The company leverages its 553-kilometer water pipeline network covering the EEC and plans to increase raw water capacity from 417 million cubic meters to 500 million cubic meters to meet long-term demand. It is also partnering with STECON to develop water systems for industrial and Data Center customers. The outlook for the third quarter of 2026 points to a return to profitability, following a loss of around 15 million baht in the same period last year. The recovery is expected to continue through the fourth quarter of 2026 and into the first quarter of 2027, supported by the super El Niño phenomenon and customer water demand from the Data Center trend. The company maintains a market share of approximately 60% in the eastern region and has new projects, including U-Tapao, Khlong Luang–Chonburi pipeline, and new customers in Amata City Rayong 2, WHA Chonburi, Vichit Valley, Thai Oil, and Rojana, which will help expand its revenue base in the coming period.

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, during its mobile meeting in Songkhla Province, approved three projects under the second phase of the southern dual-track railway, with a total investment of 107 billion baht. These include the Chumphon–Surat Thani, Surat Thani–Hat Yai Junction, and Hat Yai Junction–Padang Besar routes. The government will bear all costs, and construction is set to begin in fiscal year 2026. Meanwhile, three other routes in the northern and northeastern regions received in-principle approval for further detailed studies. Kasikorn Securities' research division views this as positive for construction and building materials companies, particularly CK and STECON, as there is potential for their backlogs to increase with the tendering of new infrastructure projects.

The Cabinet has approved the second phase of the southern dual-track railway project, comprising three routes with a total investment of 106,798.32 million baht. Bidding is expected to open between late 2026 and early 2027. Brokers view that CH. Karnchang (CK) will benefit the most, given its expertise in large-scale state infrastructure projects, and is expected to secure at least 27,000 million baht in contracts, while STECON is expected to secure around 21,000 million baht. The three routes include: Chumphon–Surat Thani (36,892.32 million baht), Surat Thani–Hat Yai Junction (61,534.55 million baht), and Hat Yai Junction–Padang Besar (8,371.45 million baht). The government will bear all costs. This approval will bolster CK's backlog and provide upside to its share price from the current target of 23 baht. Other construction contractors such as ITD, UNIQ, and NWR also have opportunities to participate in the bidding, while construction material companies like SCC, SCCC, and TASCO will benefit from increased demand for cement and steel.

Asia Plus Securities stated that the SET Index's overall picture is just waiting for a continued rebound after holding above the 1580-point base, which is the second-level Buy Zone of 1575-1585 points. The next resistance is at 1615 points; breaking through it would open strong upside. For S50U26, it recommends Long at 1060 points, waiting for a bounce to take profits at 1080-1100 points, or averaging Long at 1045-1050 points with a Cut below 1040 points. First point: G20 opens the way to rescue the global economy, despite the US threatening additional sanctions on Iran, which could impact oil and financial markets. In the short term, it gives positive weight to upstream energy to hedge against the risk of rising oil prices, supporting PTTEP, PTT, and BCP. Be cautious of stocks sensitive to energy costs and slowing global economy, such as IVL, PTTGC, SCC, AAV, BA, PSL, TTA, and RCL. Second point: The Cabinet approved a 400 billion baht energy fund to stimulate the economy and boost Thai energy megaprojects. It approved a decree to borrow 400 billion baht to alleviate the energy crisis and invest in energy transition projects, divided into 200 billion baht for public assistance and 200 billion baht for energy investment. Standouts: GULF, GPSC, BGRIM, CK, and WHA. Third point: The mobile Cabinet meeting in Songkhla is set to approve the second phase of double-track railways with 6 routes, totaling 316 billion baht, along with a 10 billion baht disaster insurance budget. Standouts: CK and STECON.

The mobile Cabinet meeting in Songkhla Province, scheduled for August 31 to September 1, 2026, is set to consider several large-scale projects that could generate investment in the South for years to come, especially the second phase of the Southern dual-track railway with a total budget of approximately 104.466 billion baht, covering three routes with a combined distance of 534 kilometers: Chumphon–Surat Thani (30.423 billion baht), Surat Thani–Hat Yai Junction–Songkhla (66.271 billion baht), and Hat Yai Junction–Padang Besar (7.773 billion baht). If approved, this will connect the rail network from the lower central region to the Malaysian border, reduce logistics costs, and enhance long-term economic potential. Stocks expected to benefit include construction contractors such as CK, STECON, ITD, UNIQ, and NWR, as well as construction material companies like SCC, SCCC, and TASCO. Additionally, there are proposals from five southern provinces totaling 199 projects with an initial budget of over 57 billion baht, which could support water management and utility stocks such as FLE, UBA, and WIIK, as well as tourism and retail groups like AOT, AAV, CENTEL, ERW, SHR, CPALL, and CRC. However, most benefits are medium to long term and depend on actual approvals and bidding. Furthermore, there are projects for the Songkhla Lake Bridge and the Lanta Island Bridge with a combined budget of approximately 6.7 billion baht, expected to be completed by 2029, but the main contractor is a foreign company, CHEC Construction (M) Sdn Bhd, so Thai stocks may only get subcontracting work or domestic material procurement. Investors should monitor approval resolutions, funding sources, contract divisions, and actual work secured by each company, as these are key factors determining the impact on profits.

Thai E-Finance News reported that Maybank Securities (Thailand) stated that STECON is advancing state projects, with the Ministry of Transport preparing to submit the Phase 2 dual-track railway project worth 110 billion baht to the mobile cabinet meeting today, boosting sentiment for the contractor group. It is expected that STECON will secure private contracts from data centers during 2H69-1H70, pushing its 2026 backlog to 167 billion baht, a new all-time high. Meanwhile, GULF benefits from the IPP power plant auction after the Energy Policy and Planning Office opens public hearings on the PDP 2026 plan on September 8, with a net D/E ratio of only 0.86 times and 2026 profit growth of 12% YoY.

Several brokers have upgraded their recommendations and target prices for STECON Group Public Company Limited (STECON), viewing it as a high-margin Data Center construction contractor with a 100% win rate. Meanwhile, the Cabinet has resolved to unlock the U-Tapao Airport and Eastern Aviation City project, in which STECON holds a 20% stake in U-Tapao International Aviation Company Limited (UTA) and serves as the main contractor for the project valued at 27.043 billion baht. Maybank Securities (Thailand) has raised its target price to 23.50 baht from 12.50 baht, while Krungsri Securities has set a target of 24.90 baht, and Bualuang Securities recommends buying with a target of 21 baht. Mr. Phuwadon Phusod-ngern, IAA, Investment Strategy Manager at Bualuang Securities Research, said that the next 1-3 months is a time to accumulate shares gradually rather than just short-term trading. He forecasts new work wins totaling 204 billion baht during 2026-2028 and expects the backlog to reach new highs of 167 billion baht and 203 billion baht in 2027-2028. He also projects a compound annual growth rate (CAGR) of 11% for earnings during 2026-2028, despite a high earnings base in 2026.

A broker recommends buying STECON shares and has raised the target price by 8% to 22.28 baht, expecting 2027 revenue to surge to 5-6 billion baht, driven by large government projects and increased backlog clarity. Analysts at Kasikorn Securities have raised the value of potential projects from 4 billion baht to 6.9 billion baht, while the current backlog stands at 113 billion baht, after securing new work worth 2.9 billion baht in Q2 2026, with a full-year target of 7.9 billion baht, supported by data center projects nearing contract signing, and expects the investment cycle to remain strong for at least another two years.

Stecon Group Public Company Limited, or STECON, announced that Stecon Power Company Limited, a subsidiary in which it holds 99.99 percent, has purchased an additional 47,850 ordinary shares of Nova Founders Company Limited at 100 baht per share, totaling 4,785,000 baht, from Nova Founders Holding Company Limited, which is not a related party. This increases the shareholding in NOVA from 62.5 percent to 100 percent, to proceed with the solar power plant project in Chanthaburi province. Following the increase in shareholding, the total investment for the project will not exceed 71,000,000 baht.

Krungsri Securities Public Company Limited maintains a buy recommendation on STECON and raises its 2027 target price to 24.90 baht from 20.60 baht, urging investors to focus on STECON's opportunities to win new work rather than on profit. Key drivers include data center projects, upcoming bidding for government mega projects, and the new PDP2026 plan, which should support speculative interest in STECON because it is a contractor specializing in power plant construction and has the highest chance of winning bids in the sector. The firm keeps its full-year revenue target at 35 billion baht, up 5 percent from the previous year. In the first half of 2026, revenue reached 16.788 billion baht, or 48 percent of the full-year target, mainly from construction of data centers, the Den Chai-Chiang Rai-Chiang Khong double-track railway, and the western section of the Orange Line. Backlog at the end of the second quarter of 2026 stood at 116.44 billion baht, still enough to support revenue expansion for at least two more years. The company is currently bidding for work worth more than 85 billion baht in total, comprising one government project worth 15.7 billion baht and private-sector work including three data center projects worth 49.8 billion baht combined, power plants worth 16 billion baht, and one airport building project worth 3 billion baht. Results for all of these are expected this year. In addition, more than 700 billion baht of government work is scheduled to open for bidding from late this year into next year. Gross margin remains within the target range of 7 to 8 percent. Although the second quarter of 2026 saw gross margin ease to 7.16 percent from 7.64 percent in the first quarter, the company has already locked in construction material prices and most of its backlog consists of private-sector work with higher margins, so it is confident gross margin will stay within the target range. The new target price is based on a sum-of-the-parts valuation and implies upside of 33.16 percent.

Construction stocks rose, led by STECON and CK, after second-quarter 2026 results came in better than market expectations. STECON gained 4.40% to 19.00 baht on turnover of 519.31 million baht, while CK added 3.65% to 19.90 baht on turnover of 269.33 million baht. Kasikorn Securities said STECON posted normalised profit of 910 million baht in the second quarter of 2026, up 374% from a year earlier and 488% from the previous quarter, slightly above expectations. Its backlog stood at 114 billion baht, supporting revenue for about three years, with new work expected to accelerate in the second half of 2026 to support a new-work target of 50 billion baht. Kasikorn Securities maintained a buy rating with a target price of 20.62 baht. Meanwhile, Pi Securities kept a buy rating on CK, saying second-quarter 2026 net profit beat expectations at 800 million baht, prompting it to raise full-year 2026 profit by 5% to 2.237 billion baht. It maintained revenue at 44.803 billion baht and assessed fair value at 23.1 baht. CK had a backlog of 146.305 billion baht at the end of the first half of 2026 and targets new work of more than 249 billion baht from large government projects in the future.

Stecon Group reported second-quarter 2569 net profit of 911 million baht, up 160% from the previous quarter and close to analyst expectations. The main driver was recognition of 736 million baht in dividends from its investment in GULF, while construction revenue rose 29% from the previous quarter to 9.345 billion baht, helped by accelerated revenue recognition from major backlog projects including the Orange Line, Purple Line, Den Chai double-track railway, data centers, the Clean Fuel Project, waste-to-energy plants, and Bangkok Mall. Data center projects played a particularly important role in this quarter's revenue growth. The construction gross margin was 7.16%, down slightly from the first quarter of 2569 due to pressure from higher material costs and oil prices, but this was partly offset by a higher share of high-margin private-sector work and efficient cost management. Selling and administrative expenses as a share of revenue fell to 3.2% from 4.1% in the first quarter of 2569, reflecting economies of scale after revenue increased. First-half 2569 construction revenue accounted for 47% of the full-year revenue estimate of 35 billion baht, but the research team is not concerned because construction contractors typically accelerate revenue recognition in the second half, and management has maintained its full-year revenue target. A key issue to monitor is growth in new backlog, especially data center work, which is becoming an important growth engine for STECON. The company is currently bidding for three additional data center projects worth about 22.5 billion baht in total, supporting its 2569 new work target of 50 billion baht. In addition, the return of public-sector investment after the new fiscal year begins in the fourth quarter of 2569 will be another important factor supporting backlog and earnings growth going forward. Asia Plus Securities maintains a positive view on STECON because the company is transitioning from a traditional construction contractor to a business with diversified revenue sources and long-term value-creation potential, especially in data centers, which give the company access to high-margin work and align with private-sector investment megatrends. With a strong order backlog and growth opportunities from future new projects, the research team keeps a buy rating on STECON with a 2570 target price of 23.00 baht based on sum-of-the-parts valuation, implying upside of about 39% from the current price.

Kasikorn Securities recommends BH and STECON as today's standout stocks, while assessing the SET Index range at 1,600 to 1,625 points after yesterday's close at 1,609.76 points, down 11.86 points or 0.73 percent, with selling pressure from foreign investors amid pressure from the 10-year US Treasury yield at around 4.65 percent and ongoing uncertainty in the Middle East, which kept Brent crude oil prices above 90 dollars per barrel. For BH, or Bangkok Dusit Medical Services Public Company Limited, Kasikorn gives a target price of 204 baht and expects second-quarter net profit for fiscal year 2026 at 1.89 billion baht, up 6 percent from the previous quarter and 2 percent from a year earlier. First-half net profit for 2026 is estimated at about 4 billion baht, up 100 percent from a year earlier and above expectations, with foreign patients remaining the main revenue driver, rising 3.8 percent year on year. For STECON, or Stecon Group Public Company Limited, Kasikorn gives a target price of 20.62 baht and expects second-quarter net profit for 2026 at 910 million baht, up 374 percent from a year earlier and 488 percent from the previous quarter, slightly above expectations, supported by dividend income from GULF. Excluding that dividend item, core profit was still higher than expected. The company has a backlog of about 114 billion baht, supporting revenue for around three years, and targets new contracts in 2026 of about 50 billion baht.

The Office of the National Economic and Social Development Council reported that gross domestic product in the second quarter of 2026 expanded 1.9% from a year earlier, slowing from 2.8% in the first quarter but above the market forecast of 1.7%. The main support came from private investment, which grew strongly in line with investment promotion applications, while private consumption slowed to 1.9% from 3.3% in the previous quarter amid higher domestic energy prices, and government spending was weak because disbursement had already been accelerated earlier. Yuanta Securities expects consumption to recover clearly in the third quarter from the full-quarter impact of the Thai Chuay Thai Plus measures, and government spending to accelerate toward the end of the fiscal year. It maintains a positive view on construction contractors, power plants, industrial estates, retail, and food and beverage, citing stocks CK, STECON, GUNKUL, GULF, FORTH, SAMART, EPG, BJC, CPALL and CBG. The planning agency also raised its GDP forecast for this year to 2.0 to 2.5% from 1.5 to 2.5%, and lowered its inflation forecast to 1.5 to 2.0% from 2.0 to 3.0%, which helps ease pressure on monetary policy tightening.