Sino-Thai Eng & Construction

Sino-Thai Eng & Construction Plc (STEC) 

With tame building material prices and a backlog of orders enough for two-and-a-half years’ worth of revenue, STEC’s earnings outlook is bright. The strong balance sheet will position STEC for more power and infrastructure projects to further boost its backlog. With a solid earnings track record, STEC should catch up with rest of the market, as it has underperformed for some time. Strong 1Q12 earnings will be the catalyst. Reiterate Outperform and THB18.5 target price, still based on two standard deviations above historical average.