Ekarat Engineering Public Company Limited

Shares of Ekarat Engineering Public Company Limited, or AKR, stood at 1.03 baht, up 0.04 baht or 4.04%, with trading value of 44.60 million baht. Yuanta Securities (Thailand) recommends "accumulate" AKR shares, assessing that the company stands to benefit from the country's new investment round across all business groups, especially the transformer and private PPA power plant businesses, which are supported by upgrades to the power system to accommodate the expansion of data centers as well as growth among semiconductor manufacturers. Meanwhile, the solar rooftop manufacturing and installation business is expected to be driven by the people's solar project covering 1 million households, which is scheduled to open for registration this October. For third-quarter 2026 results, profit is expected to grow both from the previous quarter and compared with the same period last year, supported by accelerating transformer deliveries in both the public and private sectors. Normal profit for 2026 is forecast at 160 million baht, up 18% from the same period last year, and normal profit for 2027 is expected at 220 million baht, up 38% from the same period last year. On valuation, AKR currently trades at a 2026 PER of about 9 times and about 7 times for 2027, while the estimated dividend yield is around 7-9% per year.

Ekarat Engineering Public Company Limited, or AKR, expects second-half 2569 performance to grow better than the first half. Danucha Noijai boon, a company director, told the Stock Vision news team that the company has a backlog of about 700 million baht and expects to recognise roughly 70% of it as revenue within this year. It has set a full-year 2569 sales target of about 2 billion baht, and sales have a chance to exceed that target by about 20% on the back of an accelerated push in the solar segment, where it has won more work than last year. That incremental sales will only begin contributing revenue in 2570. As for the large-lot transformer bid for the power authority, with a total value of more than 1 billion baht, the company normally has a roughly 10 to 15% chance of winning such work. The government's bidding process has been delayed into September, so contract signing and most deliveries are expected to slip into 2570. Gross margin in the second quarter of 2569 rose to about 30% on deliveries of large transformer lots, and in the second half the company expects to maintain a margin at a similar level. Opportunities to win Data Center work remain limited in the short term, because most of the major capital groups investing in Thailand are Chinese companies that mainly import materials, equipment, tools, transformers and personnel from China. Meanwhile, Data Center projects from European and US capital groups, which tend to use domestic materials and equipment, are still few in number, so this is not yet a main driver for the company at present.

The Ministry of Finance has unveiled preliminary guidelines for a household solar rooftop installation subsidy program, with the government supporting up to 50,000 baht per household, targeting those with monthly electricity bills of 3,000 baht or more. It is expected to use funds from an emergency decree loan of 50 to 60 billion baht and may launch the program in September. Mr. Danucha Noijiboon, director of Ekarat Engineering Public Company Limited, or AKR, said that if such measures materialize, it would be positive for the company, helping to drive greater demand for solar panels and system installation work. Currently, AKR has a panel manufacturing plant and an expert engineering, procurement, and construction team ready to support new demand. For the remainder of 2026, the company plans to bid on new projects worth 500 to 600 million baht, and has a current backlog of about 800 million baht, of which approximately 70% is expected to be recognized as revenue within this year, with the rest recognized continuously in 2027. In addition, third-quarter performance is expected to grow from the second quarter due to a large backlog awaiting delivery, and the solar cell business is improving in line with government policy. For the full year 2026, the company maintains a revenue growth target of about 10% from 2025, after first-half revenue of 887 million baht.