Pi Securities noted emerging positive signals regarding the potential for new project awards for CH. Karnchang Public Company Limited (SET: CK). Previously, the lack of major government investment projects for bidding resulted in CK signing new contracts, mainly as extensions to existing projects, worth approximately THB 870 million since early 2026.
This led to a decline in CK’s backlog, which dropped from over THB 168 billion at the beginning of the year to around THB 146 billion as of mid-2026.
However, the brokerage sees improving prospects following the Cabinet’s approval on 1 September 2026 of the Phase 2 Southern Double Track Railway project, comprising three sections: Chumphon–Surat Thani, Surat Thani–Hat Yai, and Hat Yai–Padang Besar, with a total budget exceeding THB 106 billion. According to government data, the total approved value is THB 106,798.32 million.
The details include a budget of approximately THB 36.89 billion for Chumphon–Surat Thani, around THB 61.53 billion for Surat Thani–Hat Yai, and about THB 8.37 billion for Hat Yai–Padang Besar. Pi Securities expects the bidding process for these segments to commence in early 2027.
All three sections are part of the Phase 2 double-track project. The progression of this initiative signals an upward trend in government construction projects. Other large projects, such as the second phase of the high-speed rail, airport expansions, and expressway or motorway projects, are also developments to monitor from early 2027 onwards.
Pi Securities estimates that CK has an opportunity to bid for the three double-track railway segments, likely divided into about five contracts. The company may secure at least some portion of these projects, which could increase 2027 revenue beyond the current estimate of THB 42.13 billion, as this projection does not include new project income.
Additionally, the brokerage identifies two other large-scale projects where CK could be awarded, given their links to subsidiary BEM: the Southern Purple Line MRT system, valued at approximately THB 30 billion, and the Double Deck Expressway project, worth about THB 35 billion.
Regarding third-quarter operating results, Pi Securities expects CK to maintain strong performance, continuing the trend seen in the second quarter, supported by the peak season of CKP.
Given the resumption of new project tenders and the start of the new fiscal year in October, which could see additional projects open for bidding, the analyst maintains its ‘Buy’ recommendation for CK, with a target price of THB 23.10 per share, based on 1.3x 2026 PBV.
