Kasikorn Securities (KS) has reaffirmed its slightly positive view on Stecon Group Public Company Limited (SET: STECON) following the company’s recent analyst meeting, citing strong earnings momentum and solid positioning in the data center construction segment.
According to management, STECON’s first quarter 2026 performance was on track, with revenues accounting for 21% of the company’s full-year target. The gross profit margin (GPM) for 1Q26 stood at 7.8%, surpassing the full-year guidance of 7% previously set by the company’s executives.
STECON’s management maintained an optimistic outlook on data center business opportunities, elaborating that STECON has been invited to bid on nearly all relevant projects. Key differentiators for STECON include its robust adherence to ESG standards and its status as a listed company.
According to the company, only two to three contractors in Thailand meet the requirements for U.S. data center projects, positioning STECON as a top player in this field.
New project wins in 1Q26 totaled THB 6.7 billion, comprising THB 1.3 billion from environment-related projects and THB 5.4 billion from commercial building contracts. This contributes meaningfully to STECON’s annual new backlog target of THB 50 billion.
Regarding the U-Tapao Airport and Eastern Airport City project, management anticipates that construction will commence in the second half of 2026. The company’s current backlog stands at THB 27 billion. Executives noted that additional upside could come from infrastructure and commercial assignments within the airport zone, with international investor interest intensifying during recent roadshows.
While increased construction material costs remain a concern, management expects their impact to be limited, while maintaining their annual GPM guidance. For government projects, higher costs are offset through the K-factor mechanism, while negotiations with private sector clients aim to secure support for material price inflation.
KS remains slightly upbeat about STECON, underpinned by ongoing earnings strength, the company’s leading presence in data center construction, and increased clarity on the UTA project. Additional works linked to UTA may provide further upside to STECON’s backlog. KS thus reiterates its “Outperform” rating with a target price of THB 15.28.
