On Tuesday at 10:15 AM (Bangkok time), the share price of Pylon Public Company Limited (SET: PYLON) rose by 1.74% or THB 0.04 to THB 2.34, with a trading value of THB 2.67 million.
Krungsri Securities (KSS) has turned bullish on PYLON, anticipating the company will benefit from a recovery in the construction foundation industry and robust demand for piling services through 2026.
KSS notes that PYLON is poised to operate at nearly full capacity in the second half of 2025, backed by ongoing projects such as the MRT Orange Line and data centers. The analyst highlights a key opportunity in a nearly THB 500 million mixed-use project expected to begin in January 2026 and span 11 months, as well as the prospect of landing additional private-sector contracts worth up to THB 200 million.
These contract wins could drive PYLON’s order backlog to a new record—potentially reaching THB 1.8 billion—and lift profit margins to over 20%, the highest in five years. With reduced competition in the market, the company is expected to see improved pricing power and margin expansion.
As a result, KSS has revised its earnings outlook, projecting net profits of THB 204 million in 2025 and THB 211 million in 2026, a marked turnaround from the previous year. The analyst raises its recommendation on PYLON to ‘Buy’, with a 2025 price target of THB 3.0 per share, up from THB 2.6, reflecting strong fundamentals and resilient sector demand.
Similarly, Kasikorn Securities (KS) has also expressed increased confidence in PYLON following a recent ‘Construction Week’ event that featured company management. KS reports that PYLON is likely to post approximately 40% year-on-year revenue growth for the third quarter of 2025, with gross margins rebounding to 24.6%, supported by ongoing project execution and reduced sector competition as some piling contractors exit the business.
The brokerage firm notes that this market shift has allowed PYLON to consistently win new contracts, including an expected backlog addition of around THB 500 million from private sector projects, despite continued overall softness in private construction demand.
KS also highlights PYLON’s commitment to shareholder returns, noting its sustained high dividend payout ratio and projected 8.1% yield for both 2025 and 2026. The company is viewed as well-positioned to benefit from large infrastructure projects, such as the double-deck expressway, which could further boost backlog growth.
Reflecting these developments, the analyst has upgraded its earnings forecasts for 2025 through 2027 by up to 109% and now values PYLON at a mid-2026 target price of THB 3.38 per share, with a ‘Buy’ recommendation.
