On Thursday at 11:54 AM (Bangkok time), the share price of Stecon Group Public Company Limited (SET: STECON) gained 3.85% or THB 0.70 to THB 18.90, with a trading value of THB 718.30 million.
CH. Karnchang Public Company Limited (SET: CK) rose by 2.60% or THB 0.50 to THB 19.70, with a trading value of THB 393.71 million.
Globlex Securities wrote that STECON reported a net profit of THB 911 million for the second quarter of 2026, representing a 78% increase year-on-year and a 160% rise quarter-on-quarter. This robust performance was primarily driven by a 7% increase in construction business revenue compared to the previous year, reaching THB 9.35 billion.
The growth in construction revenue stemmed from the progressive recognition of key projects such as the Orange Line mass transit, the Den Chai–Chiang Rai–Chiang Khong dual-track railway, and several data center construction contracts. Additionally, STECON recognized dividend income of approximately THB 736.5 million in this quarter.
However, the company’s gross profit margin in 2Q26 declined to 7.2%, down from 7.6% in the previous quarter, primarily due to faster-paced project execution. Selling and administrative expenses as a percentage of revenue decreased to 3.1% from 4.1% last quarter, although actual expenses rose marginally by THB 3 million to THB 301 million.
For the first half of 2026, STECON posted a net profit of THB 1.26 billion, an increase of 48% year-on-year, accounting for 71% of the full-year profit forecast. Globlex maintains its full-year 2026 net profit estimate at THB 1.75 billion, which is 11% lower than the previous year, due to expectations of lower dividend income in the second half.
Nevertheless, construction revenue is likely to accelerate, supported by a high backlog valued at THB 114 billion. Globlex also sees a potential upside of about 30% to its forecast and reiterates a ‘Buy’ call with a target price of THB 21.50 per share.
Separately, Asia Plus Securities reviewed results from CK after its analyst meeting. The brokerage noted that CK’s 2Q26 earnings signaled a strong recovery in profit quality, outperforming expectations despite a slight seasonal decline in construction business revenue.
The company’s gross profit margin improved to 8.15%, up from 7.60% in the prior quarter, supported by compensation from escalation clauses (K factor), superior cost control, and a favorable project mix. This propelled net profit to THB 800 million, a 143% surge quarter-on-quarter.
CK’s performance also benefited from seasonal dividends from TTW (TTW), increased profit sharing from Bangkok Expressway and Metro (BEM), and lower interest expenses. CK’s financial position remains solid, with its net debt-to-equity ratio falling to 1.01 times.
All core projects in CK’s backlog are progressing as planned. Incidents such as a subsidence event in the Purple Line South project and an accident on the Den Chai–Chiang Rai–Chiang Khong dual-track railway have not impacted delivery schedules. At the end of 2Q26, CK’s backlog stood at THB 146.3 billion, ensuring revenue visibility for several years ahead.
The company is also poised to benefit from nearly THB 800 billion in public infrastructure bids, including the East Expansion dual-track rail, Motorway M5, and the Double Deck Expressway, with greater clarity expected from late 2026 through 2027.
CK targets new project wins totaling approximately THB 249.9 billion during 2027–2028. The planned larger contract sizes for high-speed rail and Phase 2 dual-track railway projects are positive for CK, given its proven track record, strong finances, and capability to handle large-scale projects.
Although 2Q26 profit was lifted by extraordinary factors, notably a higher-than-usual gross margin, management remains focused on its long-term target margin of 7–8%. Asia Plus expects further profit growth in 3Q26, with interest costs staying low following debenture repayments, and increased contributions from BEM and CK Power (CKP), which is entering its peak season.
Asia Plus maintains a positive outlook on CK, highlighting its balanced revenue structure between construction and investments in BEM, CKP, and TTW—helping to mitigate earnings volatility. Combined with a robust backlog and opportunities for new projects in 2027–2028, the brokerage reiterates a ‘Buy’ recommendation, assigning a 2027 fair value target of THB 24.00 per share.
