Brokers are bullish on STECON Group Public Company Limited (SET: STECON) following strong 1Q25 performance and solid backlog.
Pi Securities recommended a “Buy” rating for STECON based on positive factors including robust earnings performance. Additionally, the firm expects to see further investment expansion into new business lines, such as the water business, which has already started generating revenue, the Data Center business, as well as investments in two start-up companies, among others.
For the full-year revenue target of 30,904 million baht, backed by a solid backlog of over 98,000 million baht, Pi Securities believes this target remains achievable. However, the previously projected net profit of 555 million baht seems rather conservative after the company reported a net profit of 342 million baht in 1Q25. The securities company stated that it will consider revising the estimate after 2Q25 results or when there is clarity regarding the cessation of loss recognition from the Yellow and Pink Line monorail projects, which has been impacting quarterly results by over 100 million baht.
Meanwhile, FSS International Investment Advisory (FSSIA) stated that STECON maintains its revenue target for this year at 32 billion baht (+7% y-y), expecting momentum to accelerate quarter-on-quarter in 2Q-4Q25. The gross profit margin (GPM) target remains in the 7% range. The company’s current backlog stands at 125 billion baht, and STECON is confident it will achieve its new project target for the year of 50 billion baht. So far year-to-date, it has already secured 18 billion baht in new projects.
For 2H25, it is expected that the public sector will accelerate bids for projects such as double-track railways and high-speed railways. There is also potential for power plant (Solar) projects. Additionally, there is upside from an insurance claim for the repair of the Bueng Nong Bon drainage tunnel, which is expected to be completed and collected within 2Q-3Q25.
FSSIA added that the firm is revising its profit forecast for 2025 upwards to 934 million baht (a reversal from a loss of -2.4 billion baht in 2024). This reflects an upgrade to GPM and the absence of loss-sharing from the Pink and Yellow Line rail projects from 2Q25 onward. FSSIA also raised its fair price estimate to 9.50 baht with a “BUY” recommendation.
