TPI Polene Public Company Limited

Research by Asia Plus Securities assesses that a water management megaproject with a combined value of 165,000 million baht will support the growth of the construction contracting sector over the medium to long term. The project aims to cut flood damage by about 16,930 million baht per year and reduce flooded area by 3.48 million rai. Construction is expected to begin in 2027 and take eight years. Among the stocks expected to benefit, Asia Plus names CK as its top pick with a target price of 24 baht on the prospect of winning work directly, while STECON carries a target price of 23 baht on expectations it will benefit from large project contracts. Also in the frame are UNIQ, which has opportunities from large project work, and ITD, which is involved in earthworks and drainage systems. In the construction materials group, SCC, SCCC and TPIPL stand to benefit from project demand for materials. Factors to watch include the project's funding sources, land expropriation, the timing of bidding, and contract signing, all of which will affect progress and the chances that construction companies win work from the project.

The Cabinet has approved the Chai Nat–Pa Sak–Gulf of Thailand flood diversion canal project, with total investment of approximately 165 billion baht, one of Thailand's largest megaprojects in years. The project aims to create a new water diversion route from the upper Chao Phraya basin directly to the Gulf of Thailand, improving drainage efficiency and reducing flood risk in the central region, Bangkok, and surrounding provinces. The government estimates that once completed, it will reduce flooded area by about 3.48 million rai, add roughly 1.555 billion cubic metres of water storage capacity, and cut economic damage from flooding by about 16.93 billion baht per year. Under the implementation timeline, feasibility studies and design are set for 2026, with construction of phase one beginning in 2027. From 2028 to 2030, the drainage canal, sluice gates, and land acquisition will be carried out. From 2031 to 2033, main structures will be built and systems tested, before full operation in 2034. Asia Plus Securities said the construction contracting group will be the first direct beneficiary, with CK, STECON, and UNIQ standing out as stocks with strong potential to win contracts, while ITD is likely to benefit from its expertise in earthworks and drainage systems. The construction materials group, including SCC, SCCC, and TPIPL, will see support later in the materials usage cycle. Factors to watch are clarity on funding sources, the land acquisition or expropriation process, and the timetable for opening bidding on each contract, with delays in these steps posing a key risk that could push the transmission of benefits later than planned.

Analysts at Asia Plus Securities assess that the passing of the draft annual expenditure budget bill for fiscal year 2027, worth 3.788 trillion baht, will mark the start of a new round of accelerated public investment. Of that total, investment budget accounts for as much as 789 billion baht, or 20.8% of the entire budget. The Ministry of Transport is preparing to push forward a total of 262 investment projects, covering roads, railways, electric train lines, ports and airports. Meanwhile, local budgets of nearly 395 billion baht will help expand construction and maintenance work in the regions. The research team views the construction contractor group as the most direct beneficiary, especially rail systems, motorways, expressways and logistics infrastructure, which will replenish backlogs over the next 2-3 years, making CK and STECON the stocks most linked to accelerated budget disbursement. For the construction materials group, public investment will support demand for cement, concrete and domestic construction materials amid a property sector that is still recovering only modestly, with SCC, SCCC and TPIPL the main beneficiaries of the construction cycle recovery, while TASCO gains support from road and highway network maintenance budgets. Key issues to watch going forward are the speed of budget disbursement, the opening of bids for transport projects, the gradual signing of new contracts, and progress on public-private partnership projects, with CK and STECON as the top picks in the contractor group, while SCC and TASCO are the main representatives of the construction materials group.

TPI Polene Public Company Limited has filed a registration statement with the SEC to offer senior unsecured bonds, paying interest every three months, to retail and institutional investors. The proceeds will be used to repay debt from debt instrument issuance. The bonds are divided into two series: the first has a 4-year tenor, maturing in 2030, with a coupon of 3.70% per annum; the second has a 5-year tenor, maturing in 2031, with a coupon of 3.90% per annum. Subscription opens from 1 to 3 September 2026 through multiple arrangers, including CIMB Thai Bank, Asia Plus Securities, KGI Securities, and Krungthai XSpring Securities for retail and institutional investors. Retail investors can also subscribe through Krungsri Securities, Pai Securities, Globlex Securities, and others, with Bank of Ayudhya acting as bondholder representative. TRIS Rating assigned a corporate and bond rating of BBB on 22 July 2026.

TPI Polene Public Company Limited, or TPIPL, has received a BBB rating for its new unsubordinated and unsecured bonds worth up to 6.5 billion baht with a maturity of up to seven years from TRIS Rating Company Limited. The company also had its corporate rating and existing bonds affirmed at BBB with a stable outlook. The company plans to use the proceeds to repay maturing debt. The rating reflects the strength of its cement and polymer businesses and its integrated operations, but is pressured by the cyclical nature of the construction materials industry and high leverage. First-quarter 2026 performance saw EBITDA rise 5 percent year-on-year to 2.6 billion baht, while the financial debt-to-EBITDA ratio stood at 8.2 times. EBITDA is expected to increase to around 10 billion baht per year over the next three years, bringing the debt-to-EBITDA ratio down to 6 to 7 times. Liquidity remains manageable despite around 16.4 billion baht in debt maturing over the next 12 months, with funding sources of 12.2 billion baht available and the gap expected to be covered by the new bond issuance.