Stecon Group Faces Gross Margin Hit From High Fuel Prices — Market Talk

Stecon Group faces a hit to gross margins from high fuel prices, CGS International's Kasem Prunratanamala says in a research report. High oil prices pressure construction contractors such as Stecon Group through direct fuel costs and the "cascade" effect on oil-derived materials, the analyst says. This could materially compress the Thai company's margins and delay project activity. The brokerage cuts its gross margin assumptions for the company to 6.3% from 7.0% for 2026 and to 6.6% from 7.0% for 2027. It downgrades the stock to hold from add and lowers the target price to 12.10 baht from 13.50 baht. Shares are 3.3% lower at 11.70 baht. (ronnie.harui@wsj.com)