Today, March 5, 2026, the share price of Pylon Public Company Limited (SET: PYLON) closed the morning session at THB 3.10 per share, up THB 0.12 or 4.03%, with a trading value of THB 2.93 million. This increase followed positive sentiment from a record-high backlog, while brokers also see a recovery trend in the piling industry.
Krungsri Securities (KSS) expressed optimism about the PYLON outlook, forecasting growth in the piling industry over the next 1–2 years, following signs of recovery beginning in 2025. Key positive factors include fewer market players after a major operator among the Big 4 withdrew at the beginning of 2025, and project owners placing more emphasis on foundation work following a series of earthquakes and sinkholes in multiple areas. There is also an increasing trend in government project investments, including mega projects and data centers.
The securities company estimates that major upcoming projects include the Double Deck project and the high-speed rail linking three airports, with a total project value of around THB 300 billion. Piling work is expected to be worth about THB 9 billion, or approximately 3% of the total project value. This is a significant amount—equivalent to about 150% of the combined revenue of the three largest piling operators in the market. Major operators are likely to collaborate, given the scale of the projects and the need for additional machinery investment.
In the past, PYLON received a piling contract for the high-speed rail connecting three airports, valued at approximately THB 400 million as labor-only. However, this project has experienced long delays, making it possible that contract renegotiations or a new bidding process may occur in the future.
As for PYLON’s current backlog, it stands at THB 2.2 billion, a new record high. Since the start of the year (YTD), the company has secured THB 1.04 billion in new contracts across eight projects—up from seven projects previously reported to the Stock Exchange of Thailand (SET) on February 24. The current backlog supports operations through 3Q26, which is longer than usual, given that typical piling work generates revenue just 3–4 months in advance.
Regarding the impact of the Middle East war situation, KSS views the effects as limited, since diesel costs comprise only about 4% of total costs and piling projects are short-term. Thus, cost increases can be passed on quickly. For every THB 1 increase in diesel price, PYLON’s 2026 profit would be affected by just 0.12%.
The securities company maintains its net profit estimate for PYLON in 2026 at THB 241 million, representing 14% growth year-on-year. The expected dividend yield for 2026 is around 9%, supported by a less competitive market and improved margins in the backlog. The recommendation is “BUY,” with a 2026 target price of THB 3.90 per share, based on a PER of 12 times.
Additionally, PYLON is preparing to pay a dividend from 2025 operations at a rate of THB 0.24 per share, yielding approximately 8.10%. The XD sign is set for March 17, 2026, and the payment date is May 22, 2026.
