Dao Securities expects CK's Q2 profit to reach 678 million baht as construction progresses

Kaohoon··TH·Read original
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Dao Securities Thailand forecasts that Ch. Karnchang, or CK, will post a net profit of approximately 678 million baht in the second quarter of 2026, down 21 percent from the same period last year but up 106 percent from the previous quarter, reflecting a recovery driven by progress on large-scale construction projects and lower financial costs. Construction revenue is expected to rise 13 percent year-on-year, supported by the Orange Line electric train project and the Luang Prabang hydropower plant project. The backlog awaiting revenue recognition is estimated at around 140 billion baht, down from 190 billion baht in the second quarter of 2025 and 160 billion baht in the first quarter of 2026, but remains a key future revenue base. Gross margin is forecast at 7.4 percent, down from 7.9 percent a year earlier, while selling and administrative expenses to sales are expected at 4.8 percent, down from 5 percent a year ago. Other income is projected to decline 29 percent year-on-year due to lower profit contributions from CK Power, or CKP, but increase 77 percent from the prior quarter, thanks to dividend income from TTW and seasonally stronger profit contributions from CKP, as well as dividends from Bangkok Expressway and Metro, or BEM. Interest expenses are expected to fall 26 percent year-on-year and 3 percent quarter-on-quarter after the company gradually repaid loans. Dao Securities maintains its 2026 normalized profit forecast at 2.5 billion baht, up 2 percent from the previous year, and expects third-quarter 2026 profit to grow both year-on-year and quarter-on-quarter, driven by higher construction revenue, a lower interest base, and a favorable seasonal pattern for CKP. Near-term catalysts include progress on the Double Deck project, mechanical and electrical systems work for the Purple Line South project, and the opening of new government project bids. Dao Securities reiterates a buy rating on CK with a target price of 23.00 baht per share.

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CH. Karnchang PCL
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Dao Securities forecasts Q2 profit recovery, higher construction revenue, and lower financial costs.

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