According to Yuanta Securities (Thailand), citing a local news outlet, Phiphat Ratchakitprakarn, Thailand’s Minister of Transport, has pressed the Expressway Authority of Thailand (EXAT) to push forward investment in large-scale projects (mega-projects), aiming to stimulate the economy and address traffic problems.
The double-deck expressway project is prioritized as a “Quick Win” urgent project. The minister views the project as worthwhile to allow private sector participation in exchange for extending concession periods, as well as for reducing the number of toll booths and toll rates. These points directly benefit Bangkok Expressway and Metro Public Company Limited (SET: BEM).
Yuanta stated that if the project makes tangible progress, it will benefit BEM as an upside risk, helping to expand the capacity of expressways. This could also drive the number of expressway users to return to pre-COVID-19 levels in the future, leading to a potential long-term increase in the company’s expressway traffic volume.
For the 1Q26 outlook, normalized profit is expected to remain at a high level, both compared to the previous quarter and the same period last year. Currently, the number of monthly expressway and metro users has already turned positive year-on-year.
As for travel trends in 2Q26, growth is expected due to a low base in the previous year. Profits for the quarter are also anticipated to be positive both year-on-year and quarter-on-quarter, supported by the recognition of dividend income from shareholding in TTW Public Company Limited (SET: TTW) and CK Power Public Company Limited (SET: CKP).
According to Yuanta, BEM’s current valuation remains attractive, making it a good opportunity for gradual accumulation. The “Buy” recommendation is maintained, with a fair value target of THB 10.50 per share.
