The Thai Cabinet has approved a unified ticketing policy for the country’s mass rapid transit railway system, setting fare rates at THB 17 to 45 per trip and covering all eight railway lines, according to a local media outlet. The policy aims to subsidize fares by introducing a new pricing formula, and it is targeted for implementation in January 2027.
To compensate operators for fare differences in the initial phase, funds will be drawn from the Mass Rapid Transit Authority of Thailand (MRTA) fund. Following this, an infrastructure fund valued at approximately THB 200 billion is expected to be established within 1.5 to 2 years, which will be used to buy back concessions on railway operations.
Kasikorn Securities (KS) holds a positive view on stocks such as BEM, BTS, PLANB, and VGI, anticipating that the unified ticketing policy will benefit both the railway business and railway-related ventures, including advertising and rental spaces, due to the projected increase in passenger numbers.
Based on existing subsidy budgets, current fare rates, and passenger volumes, Kasikorn expects the average fare across all lines to decrease from the current THB 30-35 per trip (excluding line transfers) to THB 25 per trip, as passenger numbers are anticipated to grow by 10% to 20%.
The brokerage estimates that BEM’s 2027 earnings forecast could increase by as much as 13%, with a valuation upside of THB 0.5 per share, under assumptions that passenger numbers rise by 20% and the company captures 50% of the increased ridership. Meanwhile, BTS is expected to reduce losses by THB 956 million, with a valuation upside of THB 0.4 per share.
For media-related stocks, VGI is projected to see its 2028 profit forecast increase by 70%, with a valuation upside of THB 0.02 per share, while PLANB’s 2027 profit forecast may be boosted by 3%, with a valuation upside of THB 0.01 per share.
