SBI Thai Online Securities has highlighted CH. Karnchang Public Company Limited (SET: CK) as its top pick in a recent research note, citing expected earnings recovery in the second half of 2026, particularly in the third quarter, which marks the peak season for the construction sector.
For 2Q26 results, CK reported a net profit of approximately THB 800 million, down 7.3% year-on-year but up 143% quarter-on-quarter. QoQ growth was driven by profit sharing from investments rising to THB 467 million, an increase of 58% QoQ, despite a 21.4% YoY decline stemming from lower profit sharing from CK Power Public Company Limited (SET: CKP), which was impacted by reduced water inflows and electricity output compared to a high base in the previous year, while profit sharing from Bangkok Expressway and Metro Public Company Limited (SET: BEM) improved.
Total revenue for the second quarter of 2026 reached approximately THB 11.7 billion, up 4% YoY but down 4.9% QoQ, with construction revenue accounting for approximately THB 11.3 billion, up 5.7% YoY but down 6.8% QoQ. Meanwhile, dividend income of THB 232 million helped partially mitigate negative impacts.
At the same time, CK’s gross profit margin in 2Q26 expanded to 8.15%, up from 7.86% in 2Q25 and 7.42% in 1Q26, reflecting improved cost management efficiency.
Financial costs declined to approximately THB 382 million, down 30% YoY and 8% QoQ, driven by gradual repayments of long-term loans and debentures.
Order backlog at the end of 2Q26 stood at approximately THB 146 billion, serving as a key foundation for future revenue recognition. SBI expects performance in the second half of 2026, particularly in Q3, to improve seasonally due to accelerated revenue recognition from the backlog, notably from the Purple Line and Orange Line skytrain projects.
Regarding new project bidding in late 2026, key developments include the Suvarnabhumi Airport East Expansion project and the Ngamwongwan-Rama 9 Double Deck elevated expressway project. Meanwhile, the M5 and M9 motorway projects, along with certain other expressway projects, have been deferred to 2027. Nevertheless, SBI views the short-term impact on CK as limited, given the company’s substantial backlog.
Additionally, in 3Q26, CK has the potential to recognize an increased share of profit from CKP due to improved water levels and no planned plant shutdowns. Meanwhile, BEM stands to benefit from fewer public holidays and the start of the academic term, alongside future opportunities to expand into the data center sector.
SBI noted that CK’s share price as of the report date stood at THB 18.10, compared with the 2026 analyst consensus average target price of THB 24.08. The brokerage clarified that this figure represents the market consensus average target price rather than SBI’s specific target price.
