STEC: STEC wins GULF’s power plant contracts February 12, 2018

  • GULF awarded two EPC contracts for Gulf Sriracha and Gulf Pluakdaeng Power Plant Projects with a combined generating capacity of 5,000 MW to the Consortium of MHPS Project (Thailand) Co and STEC.
  • Based on assumption that STEC will get Bt20bn-Bt30bn share of the total combined contract value of more than Bt100bn for construction work of both projects, we reckon that its backlog would increase by around 25%-30%, which should help boost its growth potential in FY19-21.
  • We see the current share price weakness as a good opportunity to buy into STEC. Our FY18 target price remains at Bt30/share.

 

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