On Friday, the share price of Stecon Group Public Company Limited (SET: STECON) closed the morning session at THB 18.70, a THB 1.20 or 6.86% increase with a total trading value of THB 638.08 million.
Meanwhile, the share price of CH. Karnchang Public Company Limited (SET: CK) closed the session at THB 20.20, a THB 0.70 or 3.59% increase with a total trading value of THB 500.24 million.
Krungsri Securities stated in its analysis that Thailand is entering the largest investment cycle in a decade, driven by simultaneous investments from the government, private sector, and foreign investors to accommodate the rapid expansion of artificial intelligence (AI) and data centers. This surge is resulting in large-scale investments across multiple sectors of the business ecosystem, including data centers, power plants, and major utility infrastructures.
The analyst predicted that Thailand’s data center capacity will expand more than fourfold over the next 1 – 5 years, rising from about 770 megawatts this year to 2,930 megawatts by 2031. The total investment value is estimated at no less than THB 900 billion. Combined with other major public sector projects (Mega Projects) and investments in related sectors, the total investment in the field is expected to exceed THB 2 trillion—a record-high in a decade.
The stock expected to benefit most from this new investment cycle is STECON. The company sits at the center of this investment trend, particularly in data center construction, where STECON boasts extensive experience and a proven track record, providing a competitive advantage and increasing the likelihood of winning new contracts relative to peers.
Krungsri noted that STECON’s backlog at the end of 2025 stood at THB 123.26 billion, an all-time high. However, they view this backlog as merely the starting point of a new upward investment cycle, since investments in data centers and Mega Projects are likely to continue expanding going forward.
The securities firm gave a “Buy” recommendation on STECON, setting a 2026 target price at THB 20.60 using the Sum of the Parts (SOTP) valuation method, implying an upside of approximately 19%. The analyst believed that the current share price has yet to fully reflect STECON’s construction business value.
According to the research, STECON’s current market capitalization is approximately THB 26 billion, with about 56% stemming from its 226.5 million shareholding in Gulf Development Public Company Limited (SET: GULF). Excluding this value, the market ascribes only about THB 14 billion to the construction business, implying a P/E ratio of just 13 – 16 times—still low compared to past growth cycles.
Krungsri believed that the accelerating investment CAPEX cycle will drive Thai construction businesses back into an uptrend, potentially leading to a re-rate in STECON’s valuation, similar to the Mega Project investment periods during 2004 – 2006 and 2010 – 2016, when major contractors’ shares traded at P/E multiples of around 20 – 30 times.
