State Railway of Thailand (SRT) has proposed the Ministry of Transportation and Ministry of Finance
22 Feb 12 09:19

State Railway of Thailand (SRT) has proposed the Ministry of Transportation and Ministry of Finance to expand the project value of the SRT Red Line contract #1 from Bt27bn to Bt30bn. (Post Today) Comment: This is good news for Sino-Thai Engineering & Construction (STEC.BK/STEC TB) who was awarded the Red Line contract # 1 with the lowest bid of Bt31.17bn. As the gap of project value would narrow from the previous of Bt4.17bn (Bt31.17bn-Bt27bn) to Bt1.1bn (Bt31.17bn-Bt30bn), negotiations for adjusting the final bidding price between STEC and SRT would likely to be successful. Given the good news ahead and bright earnings outlook, we maintain a rating Outperform on the counter with a target price of Bt18.00.