Cabinet Meeting in South Approves Multi-Billion Baht Dual-Track Railway, Boosting Construction Stocks

Industry
โดย HoonVision·TH·Read original
Summary · why it matters

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.

Impact on stocks 16

Industrials▲ · 4 stocks
CH. Karnchang PCL
CK
▲ PositiveDemandrelevance

CK is named as a construction contractor expected to benefit from the 104.466-billion-baht southern dual-track railway.

Airports Of Thailand PCL
AOT
▲ PositiveDemandrelevance

AOT is named among tourism groups that could benefit from the southern development projects.

Consumer Discretionary▲ · 4 stocks
Climate Adaptation & Water▲ · 3 stocks
Utility Business Alliance PCL
UBA
▲ PositiveDemandrelevance

Listed among utility stocks that could benefit from the 199 southern province projects covering water management and utilities.

WIIK Public Company Limited
WIIK
▲ PositiveDemandrelevance

Named among utility stocks that could benefit from the 199 southern province projects (water management/utilities) under the multi-billion baht development plan.

Materials▲ · 2 stocks
Artificial Intelligence▲ · 1 stocks
Energy Transition & Power Demand▲ · 1 stocks
Digital Finance & Tokenization▲ · 1 stocks

Off-coverage companies 3

เนาวรัตน์พัฒนาการ (Nawarat Patanakarn)Private▲ Positive
Demandrelevance

Named as a construction contractor (NWR) expected to benefit from the 104.466 billion baht second-phase southern dual-track railway.

CHEC Construction (M) Sdn BhdPrivate± Mixed
relevance

Frontline EngineeringPrivate± Mixed
relevance

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