STECON Data Center projects drive backlog over 200 billion baht

MGR Online•Economy•20d ago

Reader Briefing

Brokerages recommend buying STECON shares as the company pivots toward high-margin Data Center construction and benefits from the U-Tapao Airport project.

•STECON is shifting toward high-margin Data Center construction with a 100% win rate.
•The company's backlog is projected to reach a new high of over 200 billion baht by 2028.
•The Thai Cabinet has unlocked measures to accelerate the U-Tapao Airport and Eastern Aviation City project.
•Maybank (Thailand) and Bualuang Securities have issued buy recommendations with target prices up to 24.90 baht.

Overview

•STECON is projected to achieve a compound annual growth rate (CAGR) of 11% for profits from 2026 to 2028.
•STECON's growth is supported by a transition to high-margin Data Center construction and a 100% win rate in those bids.
•Maybank (Thailand) forecasts total new contract values of 204 billion baht between 2026 and 2028, split 46% government and 54% private.
•STECON management estimates a possibility of securing Data Center projects worth approximately 50 billion baht in quarter 4/69.
•STECON holds a 20% stake in U-Tapao International Aviation Company Limited (UTA), the concessionaire for the U-Tapao Airport development.
•The Thai Cabinet approved tax incentives and special visas (EECa Visa) to accelerate the U-Tapao Airport and Eastern Aviation City project.
•Short-term pressures for STECON may include delayed government auctions and an unusually high profit base in 2026 due to special dividends from GULF.
•STECON's current Gearing Ratio is 0.5x, which analysts suggest allows room for further investment of 20-30 billion baht.

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Key Entities

Organization

STECON Group(บมจ.สเตคอน กรุ๊ป)

A construction company shifting focus to Data Centers and a primary contractor for the U-Tapao Airport project.

Maybank Securities (Thailand)(บล.เมย์แบงก์ (ประเทศไทย))

A brokerage firm that adjusted STECON's target price to 23.50 baht.

GULF

A company that provided special dividends to STECON.

A construction company mentioned as having delayed government project auctions.

Ch. Karnchang(บมจ ช.การช่าง)

The full name of the construction company CK.

Bualuang Securities(บล.บัวหลวง)

A brokerage firm recommending a buy for STECON with a target price of 21 baht.

Bangkok Airways(บมจ.การบินกรุงเทพ)ℹ️

A company holding a 40% stake in U-Tapao International Aviation Company Limited.

BTS Group Holdings(บมจ.บีทีเอส กรุ๊ป โฮลดิ้งส์)ℹ️

A company holding a 40% stake in U-Tapao International Aviation Company Limited.

Krungsri Securities(บล.กรุงศรี)

A brokerage firm with a target price for STECON at 24.90 baht.

Cabinet(ครม.)

The government body that approved measures for the U-Tapao Airport project.

U-Tapao International Aviation Company Limited(บริษัท อู่ตะเภา อินเตอร์เนชั่นแนล เอวิเอชั่น จำกัด)

The concessionaire for the U-Tapao Airport and Eastern Aviation City project.

UTA

The abbreviated name for U-Tapao International Aviation Company Limited.

EASTW

A partner of STECON in the EWS project.

Person

Phuwadol Phusodngoen(นายภูวดล ภูสอดเงิน)

IAA and Investment Strategy Manager at Bualuang Securities.

Policy

EECℹ️

The Eastern Economic Corridor framework encompassing the U-Tapao Airport project.

EECa Visa

A special visa issued to facilitate foreign investors and personnel in the EEC area.

Place

U-Tapao Airport(สนามบินอู่ตะเภา)ℹ️

A major infrastructure project and aviation city development.