Unique Engineering and Construction Public Company Limited

The Cabinet has approved the second phase of the southern dual-track railway project, comprising three routes with a total investment of 106,798.32 million baht. Bidding is expected to open between late 2026 and early 2027. Brokers view that CH. Karnchang (CK) will benefit the most, given its expertise in large-scale state infrastructure projects, and is expected to secure at least 27,000 million baht in contracts, while STECON is expected to secure around 21,000 million baht. The three routes include: Chumphon–Surat Thani (36,892.32 million baht), Surat Thani–Hat Yai Junction (61,534.55 million baht), and Hat Yai Junction–Padang Besar (8,371.45 million baht). The government will bear all costs. This approval will bolster CK's backlog and provide upside to its share price from the current target of 23 baht. Other construction contractors such as ITD, UNIQ, and NWR also have opportunities to participate in the bidding, while construction material companies like SCC, SCCC, and TASCO will benefit from increased demand for cement and steel.

The mobile Cabinet meeting in Songkhla Province, scheduled for August 31 to September 1, 2026, is set to consider several large-scale projects that could generate investment in the South for years to come, especially the second phase of the Southern dual-track railway with a total budget of approximately 104.466 billion baht, covering three routes with a combined distance of 534 kilometers: Chumphon–Surat Thani (30.423 billion baht), Surat Thani–Hat Yai Junction–Songkhla (66.271 billion baht), and Hat Yai Junction–Padang Besar (7.773 billion baht). If approved, this will connect the rail network from the lower central region to the Malaysian border, reduce logistics costs, and enhance long-term economic potential. Stocks expected to benefit include construction contractors such as CK, STECON, ITD, UNIQ, and NWR, as well as construction material companies like SCC, SCCC, and TASCO. Additionally, there are proposals from five southern provinces totaling 199 projects with an initial budget of over 57 billion baht, which could support water management and utility stocks such as FLE, UBA, and WIIK, as well as tourism and retail groups like AOT, AAV, CENTEL, ERW, SHR, CPALL, and CRC. However, most benefits are medium to long term and depend on actual approvals and bidding. Furthermore, there are projects for the Songkhla Lake Bridge and the Lanta Island Bridge with a combined budget of approximately 6.7 billion baht, expected to be completed by 2029, but the main contractor is a foreign company, CHEC Construction (M) Sdn Bhd, so Thai stocks may only get subcontracting work or domestic material procurement. Investors should monitor approval resolutions, funding sources, contract divisions, and actual work secured by each company, as these are key factors determining the impact on profits.