Finansia Syrus Securities (FSS) had a positive view on Thailand’s construction contractor sector, following reports that the Department of Highways is moving forward with two new motorway projects with a combined investment value of THB 87 billion.
Both projects are slated for Private-Public Partnership (PPP) models and are planned to open for private sector participation by 2026.
The first project is the M5 Motorway (Rangsit–Bang Pa-In segment), with an investment of THB 31 billion. This segment will use a PPP Gross Cost format, where the private party is responsible for construction, but the state will collect toll revenues.
The second project is the M9 Motorway (Bang Khun Thian–Bang Bua Thong segment), valued at THB 56 billion, based on a PPP Net Cost model. Here, the private investor will be responsible for construction and will also have the right to collect toll revenues themselves.
Although the tendering timeline has been postponed from the second half of 2025 to 2026, FSS sees this as a clear positive development, marking significant progress on large-scale projects that are primary targets for major contractors.
The brokerage expects CH. Karnchang Public Company Limited (SET: CK), STECON Group Public Company Limited (SET: STECON), and Unique Engineering and Construction Public Company Limited (SET: UNIQ) to be the main bidders for these projects.
Despite the delay, FSS maintains its “Buy” recommendation for STECON as its top pick in the sector, citing the industry’s recovering prospects and expectations for additional government projects in the near term.
