TPI Polene Public Company Limited

Analysts at Asia Plus Securities assess that the passing of the draft annual expenditure budget bill for fiscal year 2027, worth 3.788 trillion baht, will mark the start of a new round of accelerated public investment. Of that total, investment budget accounts for as much as 789 billion baht, or 20.8% of the entire budget. The Ministry of Transport is preparing to push forward a total of 262 investment projects, covering roads, railways, electric train lines, ports and airports. Meanwhile, local budgets of nearly 395 billion baht will help expand construction and maintenance work in the regions. The research team views the construction contractor group as the most direct beneficiary, especially rail systems, motorways, expressways and logistics infrastructure, which will replenish backlogs over the next 2-3 years, making CK and STECON the stocks most linked to accelerated budget disbursement. For the construction materials group, public investment will support demand for cement, concrete and domestic construction materials amid a property sector that is still recovering only modestly, with SCC, SCCC and TPIPL the main beneficiaries of the construction cycle recovery, while TASCO gains support from road and highway network maintenance budgets. Key issues to watch going forward are the speed of budget disbursement, the opening of bids for transport projects, the gradual signing of new contracts, and progress on public-private partnership projects, with CK and STECON as the top picks in the contractor group, while SCC and TASCO are the main representatives of the construction materials group.

TPI Polene Public Company Limited has filed a registration statement with the SEC to offer senior unsecured bonds, paying interest every three months, to retail and institutional investors. The proceeds will be used to repay debt from debt instrument issuance. The bonds are divided into two series: the first has a 4-year tenor, maturing in 2030, with a coupon of 3.70% per annum; the second has a 5-year tenor, maturing in 2031, with a coupon of 3.90% per annum. Subscription opens from 1 to 3 September 2026 through multiple arrangers, including CIMB Thai Bank, Asia Plus Securities, KGI Securities, and Krungthai XSpring Securities for retail and institutional investors. Retail investors can also subscribe through Krungsri Securities, Pai Securities, Globlex Securities, and others, with Bank of Ayudhya acting as bondholder representative. TRIS Rating assigned a corporate and bond rating of BBB on 22 July 2026.

TPI Polene Public Company Limited, or TPIPL, has received a BBB rating for its new unsubordinated and unsecured bonds worth up to 6.5 billion baht with a maturity of up to seven years from TRIS Rating Company Limited. The company also had its corporate rating and existing bonds affirmed at BBB with a stable outlook. The company plans to use the proceeds to repay maturing debt. The rating reflects the strength of its cement and polymer businesses and its integrated operations, but is pressured by the cyclical nature of the construction materials industry and high leverage. First-quarter 2026 performance saw EBITDA rise 5 percent year-on-year to 2.6 billion baht, while the financial debt-to-EBITDA ratio stood at 8.2 times. EBITDA is expected to increase to around 10 billion baht per year over the next three years, bringing the debt-to-EBITDA ratio down to 6 to 7 times. Liquidity remains manageable despite around 16.4 billion baht in debt maturing over the next 12 months, with funding sources of 12.2 billion baht available and the gap expected to be covered by the new bond issuance.