Pylon Public Company Limited

Pylon Public Company Limited, or PYLON, reported second-quarter 2026 net profit of 80.15 million baht, up 36.36% from a year earlier, marking its highest level in 25 quarters. Contract revenue totaled 415.13 million baht, up 6.82% from the same period last year, driven by revenue recognition from 11 public and private sector projects. Net profit margin was 19.23%, compared with 15.03% a year earlier, and the revenue mix between retaining wall work and bored piling work stood at 38 to 62. The company's backlog as of August 13 was 1.5135 billion baht, and it expects full-year performance to beat its target. It also announced an interim dividend of 0.15 baht per share, with the stock trading ex-dividend on August 27, 2026, and payment on September 11, 2026.

Finansia Syrus Securities, or FSS, stated that Pylon Public Company Limited, or PYLON, posted strong net profit in the second quarter of 2026, stable from the previous quarter and up 32% from the same period last year, supported by a higher gross profit margin despite softer revenue. The trend for the third quarter of 2026 is expected to see profit potentially hitting a new high, as revenue from the Central Embassy construction project is gradually recognized. FSS maintains a buy recommendation on PYLON with a target price of 4 baht.

PYLON signals a strong second half, with work in hand supporting revenue continuity through the end of 2026 and into early 2027, driven by private-sector jobs and data centre projects. Additional work may also be secured late this year. Managing Director Dr. Chanes Saeng-arayakul said the company is watching for government project auctions in 2027 more than plan announcements, and expects total revenue in 2026 to grow 10 to 15 percent. Krungsri Securities estimates first-half net profit at 281 million baht, up 33 percent from a year earlier. The research team views the second-half trend as still bright, as revenue from the Central Embassy 2 project begins to be fully recognised in a full quarter. The company has a backlog of about 1.5 to 1.6 billion baht, has secured new work worth another 200 to 300 million baht, and is bidding for projects with a further 200 to 300 million baht opportunity. The broker maintains a buy rating with a target price of 4.50 baht.

Krungsri Securities says True IDC is in talks to borrow around two billion US dollars, or about 67 billion baht, to invest in a new data centre on the outskirts of Bangkok, according to a Bloomberg report. The research team estimates the sum represents 0.35 percent of GDP and will be positive for the Thai stock market, as well as stocks in related investment themes. Among the groups expected to benefit first are banks KBANK and KTB, contractors STECON, PYLON, and INSET, along with TRUE as a company within the same group.

Krungsri Securities estimates that PYLON will post a net profit of 78 million baht in the second quarter of 2026, up 32 percent from a year earlier, with revenue expected at 475 million baht, a 21 percent increase year-on-year, and gross margin rising to 24.8 percent from 24.5 percent in the second quarter of 2025. The research team maintains its full-year 2026 profit forecast at 281 million baht, representing 33 percent growth from the previous year, with the first half expected to account for 55 percent of the full-year estimate. The company currently has a backlog of approximately 1.5 to 1.6 billion baht and secured an additional 200 to 300 million baht in new work from six to seven projects in the past quarter. Meanwhile, the data center market presents foundation and piling work valued at around 40 to 50 billion baht over the next five to seven years, an area where PYLON has already gained experience through several projects. The recommendation remains buy with a target price of 4.50 baht.

The committee studying the Land Bridge project concluded that the transport system development linking the Gulf of Thailand and the Andaman Sea has a low probability of proceeding, due to budget burden risks and broad uncertainties. This direction aligns with the prime minister's earlier order to delay the project. Research analysts assess that the shift in transport infrastructure investment will focus on missing links, the Thai-Chinese railway, and certain new deep-sea ports proposed by the private sector, pointing to clearer public-private cooperation. Fiscal constraints mean the government must rely more on private investment, and scaling down projects from very large to medium or small will enable faster and more efficient investment. This trend is positive for the Thai stock market, boosting investment momentum and supporting upside potential for gross domestic product. Benefiting stocks include banking names such as KTB and KBANK, contractors like STECON and PYLON, industrial estate groups such as AMATA and WHA, and logistics players seeking new investment projects like BEM and BTS.

Krungsri Securities, or KSS, assesses that the Thai stock market is in a consolidation phase, with resistance framed at 1,650 and 1,665 points and support at 1,630 and 1,626 points. This comes amid pressure from Brent crude oil prices surging past $100 per barrel, the US 10-year Treasury yield climbing to test 4.7%, its highest in 1 year and 7 months, and the baht weakening to a 15-month low of 33.82 per dollar. Also weighing are US import tariff measures under Section 301 at rates of 10 to 12.5% on 60 countries, effective from 24 July 2026, though the impact on Thailand is limited as key exports like electronic parts and semiconductors are not covered. KSS expects stocks in the energy, energy security, and commercial banking sectors to be the main pillars supporting the index. It recommends standout energy stocks including PTT, PTTEP, BCP, TOP, and SPRC. In banking, it recommends KBANK and KTB. In telecoms, it recommends ADVANC and TRUE. In construction, it recommends STECON, PYLON, and INSET. In industrial estates, it recommends AMATA and WHA.

Investment promotion applications filed with the BOI in the first half of 2026 totaled 1.4 trillion baht, a 37% increase compared to the same period last year. In the second quarter, applications reached 0.46 trillion baht, which, while slowing from the previous quarter, remained above the quarterly average of 0.33 trillion baht seen over the past four to five years. The growth was driven by large-scale investment projects in AI and data centers, as well as other targeted industries such as electronics, electrical appliances, and food processing. Krungsri Securities Research views the rise in BOI applications as positive for the country's economic outlook and the Thai stock market under the investment cycle theme, particularly for businesses in new global S-curves like AI, data centers, and green energy. Coupled with the government's investment acceleration measures, projects are expected to be approved and implemented more quickly, benefiting overall economic activity and supporting supply chain sectors such as industrial estates like AMATA, construction contractors like STECON and PYLON, and banking groups like KBANK, KTB, and KKP.