On Monday, the share price of Stecon Group Public Company Limited (SET: STECON) closed the morning session at THB 16.90, a THB 1.10 or 6.11% decrease with a total trading value of THB 692.63 million.
Krungsri Securities (KSS) stated that STECON shares declined by 6-7% in the morning session due to concerns over reports that the government is moving to tighten regulations and approvals for data center projects. This has negatively impacted investor sentiment towards STECON, as the company is perceived as one of the main contractors expected to benefit significantly from data center constructions.
This issue arises amid growing opposition to data center investments in several countries, largely because these projects consume significant amounts of electricity and water, which may indirectly affect households.
For example, the United States required data centers to pay higher electricity fees. Some countries have suspended approvals and construction of related projects, while Ireland requires investors to participate in energy provision, and Singapore enforces strict selection processes and mandates that new projects demonstrate high energy efficiency.
In Thailand, there are reports that the government is currently deferring consideration of data center projects to establish new investment guidelines. The upcoming regulations will be focused on the project’s readiness and overall national benefit, alongside collaboration with multiple agencies to ensure that investments remain appropriate.
KSS believed that this news is a short-term negative factor for STECON’s investment sentiment, as the company is expected to be a major beneficiary of data center buildouts. As of the end of 1Q26, STECON had a backlog from data center projects totaling approximately THB 30 billion.
However, the securities firm assessed that the adverse impact of this development is likely to be limited to the short term. The analyst believed that stricter government measures will benefit Thailand and supply chain companies in the long run, as the focus will shift toward the quality and efficiency of projects, the utilization of resources, and domestic investment rather than merely the scale or monetary value of investments.
KSS remains confident in STECON’s fundamentals and views the share price decline as an opportunity for gradual accumulation. The company also has opportunities to secure other types of construction projects beyond data centers, which will help support its future backlog.
Potential projects that could help bolster STECON’s backlog include power plant construction under the PDP 2026 plan, for which announcements are pending, as well as government mega projects expected to ramp up bidding from this quarter onwards, including the construction of the M5 and M9 Motorways.
KSS maintains its STECON target price for 2026 at THB 20.60 per share.
