Kasikorn Securities has maintained its Buy rating on PYLON, or Pylon Public Company Limited, with a target price of 5.20 baht, viewing piling work as entering an upcycle driven by data center projects and public infrastructure schemes. The call followed the KS-C-Series event titled Navigating the Piling Upcycle and Data Center Expansion on September 23, which featured Dr. Chanes Saengarayakul, the company's Chairman, as speaker and drew 21 institutional investors. Management guided that excavation volume in the third quarter of 2026 will reach 100,000 cubic meters, compared with 77,900 cubic meters in the second quarter of 2026, and expects third-quarter 2026 revenue of 531 million baht, up 40% year on year and 28% quarter on quarter, while normal profit is forecast at 115 million baht, up 85% year on year and 45% quarter on quarter, with a gross margin of 32%. For 2027, GPM is expected to remain high at around 25%, driven by data center projects, the Double Deck elevated expressway project worth 35 billion baht, and the M5 motorway worth 30 billion baht. Together, those two projects could generate roughly 4.6 billion baht in piling work, and if the work is split evenly among the three registered piling contractors, that would mean about 1.5 billion baht per player, against PYLON's annual revenue-generating capacity of 2 billion baht. PYLON has recently signed NDAs for four data center projects and expects bidding to open soon, and if several projects start at the same time, the value of the work could exceed the company's annual revenue-generating capacity. The stock currently trades at a 2026 forward PER of just 9.75 times and offers a dividend yield of 9.9%, against a historical average of 16 times, while SEAFCO trades at a PER of 7.3 times and offers a dividend yield of 6.9%. Key risks include delays in government budget disbursement and a slow recovery in private-sector investment.
Pylon Public Company LimitedKasikorn Securities maintains Buy rating on PYLON with 5.20 baht target, citing piling upcycle and cheap 9.75x forward PER.
Seafco Public Company LimitedSEAFCO is mentioned only as a comparison, trading at 7.3x PER with a dividend yield, in the context of PYLON's valuation.
