Utility Business Alliance PCL

Utility Business Alliance Public Company Limited, or UBA, has signed a contract for the operation, maintenance, and management of the Din Daeng water quality control plant with the Bangkok Metropolitan Administration's Drainage Department as the client. The total contract value is 1,045.78 million baht, including value-added tax, with a total operating period of 5 years starting from July 8, 2026. Somchat Sanghitkul, Chief Executive Officer, disclosed that currently about 80% of UBA's work comes from the public sector and about 20% from the private sector. The company believes that growing challenges in water management will lead relevant agencies to place greater emphasis on water management systems, and this will support opportunities for new contracts going forward. As for operating results in the first quarter of 2026, the company reported a net profit of 16.98 million baht on a consolidated basis, an increase of 8.28 million baht, or 95.21%, from the same period last year when net profit was 8.70 million baht. Service revenue on a consolidated basis was 119.61 million baht, an increase of 42.57 million baht, or 55.26%, from the same period last year when revenue was 77.04 million baht. The main driver was revenue from the wastewater treatment business, which rose 41.48 million baht, or 78.22%, to 94.51 million baht.

The mobile Cabinet meeting in Songkhla Province, scheduled for August 31 to September 1, 2026, is set to consider several large-scale projects that could generate investment in the South for years to come, especially the second phase of the Southern dual-track railway with a total budget of approximately 104.466 billion baht, covering three routes with a combined distance of 534 kilometers: Chumphon–Surat Thani (30.423 billion baht), Surat Thani–Hat Yai Junction–Songkhla (66.271 billion baht), and Hat Yai Junction–Padang Besar (7.773 billion baht). If approved, this will connect the rail network from the lower central region to the Malaysian border, reduce logistics costs, and enhance long-term economic potential. Stocks expected to benefit include construction contractors such as CK, STECON, ITD, UNIQ, and NWR, as well as construction material companies like SCC, SCCC, and TASCO. Additionally, there are proposals from five southern provinces totaling 199 projects with an initial budget of over 57 billion baht, which could support water management and utility stocks such as FLE, UBA, and WIIK, as well as tourism and retail groups like AOT, AAV, CENTEL, ERW, SHR, CPALL, and CRC. However, most benefits are medium to long term and depend on actual approvals and bidding. Furthermore, there are projects for the Songkhla Lake Bridge and the Lanta Island Bridge with a combined budget of approximately 6.7 billion baht, expected to be completed by 2029, but the main contractor is a foreign company, CHEC Construction (M) Sdn Bhd, so Thai stocks may only get subcontracting work or domestic material procurement. Investors should monitor approval resolutions, funding sources, contract divisions, and actual work secured by each company, as these are key factors determining the impact on profits.