Pie Securities said in an analysis that it is beginning to see positive signals for new project opportunities for Ch. Karnchang Public Company Limited, or CK, after the Cabinet on September 1, 2026 approved proceeding with Phase 2 of the double-track railway project, covering 3 southern sections: Chumphon-Surat Thani, Surat Thani-Hat Yai Junction, and Hat Yai Junction-Padang Besar, with a combined value of over 106 billion baht. Government data puts the total at 106,798.32 million baht, split into approximately 36,892 million baht for the Chumphon-Surat Thani section, approximately 61,535 million baht for the Surat Thani-Hat Yai Junction section, and approximately 8,371 million baht for the Hat Yai Junction-Padang Besar section. Pie expects bidding to open in early 2027. The three double-track routes are part of the Phase 2 double-track railway project. Pie assesses that CK has an opportunity to take part in the bidding, which it expects to be divided into about 5 contracts, and if it wins the work it would be a factor supporting 2027 revenue above the current estimate of 42,134 million baht, which does not yet include revenue from new projects. Meanwhile, CK's backlog has fallen from more than 168,000 million baht in early 2026 to about 146,000 million baht at the end of the first half of 2026, after only about 870 million baht of new work was signed since the start of 2026. In addition, there are two other large projects that Pie sees CK as having a chance of winning because they are related to its subsidiary BEM: the MRT Purple Line South system installation work, valued at approximately 30,000 million baht, and the Double Deck expressway project, valued at approximately 35,000 million baht. Pie maintains a buy recommendation on CK with a fair value estimate of 23.10 baht, based on 1.3 times 2026 PBV.
CH. Karnchang PCLCabinet approved Phase 2 southern double-track railway worth 106 billion baht, with bidding expected early 2027 and CK seen as a likely bidder, supporting 2027 revenue above current estimates.
Bangkok Expressway and Metro Public Company Limited