KGI Securities (Thailand) (KGI) wrote in its analysis that Stecon Group Public Company Limited (SET: STECON) has reported the signing of new contracts worth THB 42-43 billion for 2025.
This represents a slight decrease of 4% year-on-year and falls short of the company’s original target of THB 50 billion for the year. A significant contributor was a THB 5 billion renewable energy plant project inked in December.
By the end of 2025, STECON’s backlog is projected to reach almost THB 100 billion, excluding the sizeable THB 27 billion U Tapao project. Additionally, the company is awaiting the finalization of contracts totaling THB 36 billion from various projects, including data centers, power plants, and commercial buildings.
With public sector projects worth over THB 500 billion expected to launch in the second half of 2026, following the formation of a new government, STECON anticipates further contract opportunities.
The company is actively expanding into new sectors such as data centers, utilities and power, clean energy, water management, and residential condominiums, often through joint ventures with established property developers.
For 4Q25, STECON is poised to record its highest-ever quarterly revenue, targeting THB 9-10 billion, with an estimated gross margin of around 7% and an SG&A-to-sales ratio of 3.5%, according to KGI.
Net profit for the quarter is forecast at THB 179 million, marking a 10% quarter-on-quarter increase—slightly below consensus but a strong turnaround from the THB 2.36 billion net loss incurred in 4Q24. Full-year earnings for 2025 are expected to stabilize at approximately THB 1.2 billion.
Looking ahead, STECON aims to achieve at least 5% annual revenue growth with a sustained gross margin of 7%. Dividend income from its investment in Gulf Development (GULF) is expected to exceed THB 250-300 million annually, distributed biannually from 2026 onwards.
KGI Securities has revised its earnings forecasts for STECON, now expecting net profits of THB 1.1 billion in 2026 and THB 1.16 billion in 2027, reflecting the company’s consistent top-line growth and disciplined expense management. By 2030, new businesses are anticipated to contribute around half of the company’s bottom line.
With these updates, KGI maintains an ‘Outperform’ rating on STECON and upgrades its target price to THB 7.70 per share, up from THB 7.00, pegging valuation at a 2026 price-to-earnings ratio of 10.6x.
