Kasikorn Securities (KS) has issued a “Buy” recommendation for Ch. Karnchang Public Company Limited (SET: CK), setting a target price of THB 21.91. The brokerage expects the formation of Thailand’s new government to be completed between May and June. This stability is anticipated to allow the national budget bill for fiscal years 2026-2027 to pass according to plan, paving the way for a wave of public sector projects in the latter half of the year.
KS analysts estimate CK’s revenue will reach approximately THB 40 billion per year over the next four to five years, with gross profit margins expected to remain within 7-8%. The company is also set to benefit from reduced competition as key rival Italian-Thai Development (SET: ITD) faces a blacklist, coupled with an expected increase in project tenders.
Major projects highlighted for this year include the Phase 2 of the Thai-Chinese high-speed rail project and the M5 and M9 motorway projects, which are poised to drive the company’s growth prospects.
