CK expects strong Q2 profit recovery, supported by CKP and BEM

HoonVision·6 Aug 2026·

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Analyst Construction & Engineering

Summary · why it matters

Ch. Karnchang Public Company Limited, or CK, expects normalized profit in the second quarter of 2026 to recover strongly to 703 million baht, up 113.6 percent from the previous quarter but down 18.5 percent from a year earlier. The recovery is driven by a seasonal rebound in share of profit from associates and dividend income from TTW. Construction revenue is projected at 13 billion baht, growing both quarter-on-quarter and year-on-year, supported by gradual revenue recognition from major project backlogs such as the Orange Line, the Southern Purple Line, and the Luang Prabang hydropower project. Share of profit from associates is estimated at 361 million baht, improving from the previous quarter due to BEM's performance but declining from a year ago as CKP posted a loss from foreign exchange. Gross margin is expected at 7.5 percent, stable from the prior quarter and within the 2026 target range of 7 to 8 percent. SG&A expenses are projected at 590 million baht and interest expenses at 405 million baht, both down from the previous quarter and the prior year due to gradual debt repayment. Normalized profit in the third quarter of 2026 is expected to continue growing from the second quarter, with a key boost from CKP entering the high season for hydropower plants in Laos, which should drive share of profit to its annual peak. The construction business is expected to be stable to slightly higher. At the end of the first quarter of 2026, the company had a strong backlog of 156 billion baht, supporting revenue for another three to four years, and plans to bid for and sign new projects worth over 260 billion baht in the next two years. Yuanta Securities maintains a target price of 25.90 baht and a buy recommendation, with the current share price offering an upside of as much as 42.3 percent.

CH. Karnchang PCL ▲

Bangkok Expressway and Metro Public Company Limited ▲

CK Power Public Company Limited ▼

TTW Public Company Limited ▲