STEC-CK Edge Higher after Winning Two Double-Track Train Projects
The share price of STEC and CK edged higher after winning two projects of double-track train Denchai-Chiang Rai-Chiang Khong Phase 2 and 3.
The share price of STEC and CK edged higher after winning two projects of double-track train Denchai-Chiang Rai-Chiang Khong Phase 2 and 3.
20 พ.ค. 2564

The share price of Sino-Thai Engineering Public Company Limited (STEC) and CH. Karnchang Public Company Limited (CK) edged higher on Thursday, May 20, 2021, after their consortium won the bidding for two construction contracts for double-track train Denchai-Chiang Rai-Chiang Khong Phase 2 and 3, according to the source.
 
As of 15:58 local time in Thailand, STEC rose ฿0.60/share or 4.05% to ฿15.40/share with a trading value of 1,079 million baht.
CK increased ฿0.30/share or 1.61% to ฿18.90/share with a trading value of 552 million baht.
 
The bidders consist of 1) ITD-NWR Consortium, which is Italian-Thai Development Public Company Limited (ITD) and Nawarat Patanakarn Public Company Limited (NWR), and 2) CKST-DC Consortium, which is STEC and CK.
 
CKST-DC Consortium won the construction of phase 2 and 3, while ITD-NWR Consortium won the first phase.
 
Kasikorn Securities (KS) had a positive view on CK in the long term, expecting bidding projects from the government sector to support the company’s profit to grow in an S-Curve, and a backlog that should reach 200,000 million baht, giving a target price at Bt28.65 per share.
Meanwhile, KS expected STEC to be able to manage the situation regarding a higher steel price. The investment from the private and government sector would grow significantly in 2021, which would add to STEC’s backlog and GPM. Currently, the company traded at PBV 1.44x, which was lower than -1.5SD from 5-year historical trading data.