STEC prospects remain bright with a recovering margin in 2H09

Prospects for new work remain bright from the sizeable public spending to stimulate the economy, including the mass transit projects, the 2nd phase expansion of Suvarnabhumi Airport, water resource management projects, the double track railway projects and highway projects. Given the strong reputation and expertise in power plant construction, STEC should also secure a number of the power plant projects coming next year. In addition, STEC has a high potential to secure the pre assembly modules phase 2 project worth Bt6.0bn next year, as this project owner is quite satisfied with STEC work in phase 1. STEC targets revenue growth of 10-15% next year from this year’s target revenue of Bt12bn. However, the government projects may face some delay, if there are any more political problems.