STECON Group Public Company Limited

A broker recommends buying STECON shares and has raised the target price by 8% to 22.28 baht, expecting 2027 revenue to surge to 5-6 billion baht, driven by large government projects and increased backlog clarity. Analysts at Kasikorn Securities have raised the value of potential projects from 4 billion baht to 6.9 billion baht, while the current backlog stands at 113 billion baht, after securing new work worth 2.9 billion baht in Q2 2026, with a full-year target of 7.9 billion baht, supported by data center projects nearing contract signing, and expects the investment cycle to remain strong for at least another two years.

Krungsri Securities maintains a "Buy" recommendation on STECON with a 2027F target price of 24.90 baht, following the cabinet's approval of urgent support measures to drive the U-Tapao airport and Eastern Aviation City project, including tax incentives and special EECa visas. STECON holds a 20% stake in U-Tapao International Aviation Company Limited (UTA), the concessionaire and main contractor for the project. The project aims to attract 1.3 trillion baht in investment, create 63,701 jobs, and add at least 37 billion baht to GDP in the first year. Although UTA's construction value of approximately 27.043 billion baht is already included in the backlog, the new measures will accelerate revenue recognition. Additionally, lower oil prices and the chance to win data center bids are further positive factors.

Stecon Group Public Company Limited, or STECON, announced that Stecon Power Company Limited, a subsidiary in which it holds 99.99 percent, has purchased an additional 47,850 ordinary shares of Nova Founders Company Limited at 100 baht per share, totaling 4,785,000 baht, from Nova Founders Holding Company Limited, which is not a related party. This increases the shareholding in NOVA from 62.5 percent to 100 percent, to proceed with the solar power plant project in Chanthaburi province. Following the increase in shareholding, the total investment for the project will not exceed 71,000,000 baht.

Krungsri Securities Public Company Limited maintains a buy recommendation on STECON and raises its 2027 target price to 24.90 baht from 20.60 baht, urging investors to focus on STECON's opportunities to win new work rather than on profit. Key drivers include data center projects, upcoming bidding for government mega projects, and the new PDP2026 plan, which should support speculative interest in STECON because it is a contractor specializing in power plant construction and has the highest chance of winning bids in the sector. The firm keeps its full-year revenue target at 35 billion baht, up 5 percent from the previous year. In the first half of 2026, revenue reached 16.788 billion baht, or 48 percent of the full-year target, mainly from construction of data centers, the Den Chai-Chiang Rai-Chiang Khong double-track railway, and the western section of the Orange Line. Backlog at the end of the second quarter of 2026 stood at 116.44 billion baht, still enough to support revenue expansion for at least two more years. The company is currently bidding for work worth more than 85 billion baht in total, comprising one government project worth 15.7 billion baht and private-sector work including three data center projects worth 49.8 billion baht combined, power plants worth 16 billion baht, and one airport building project worth 3 billion baht. Results for all of these are expected this year. In addition, more than 700 billion baht of government work is scheduled to open for bidding from late this year into next year. Gross margin remains within the target range of 7 to 8 percent. Although the second quarter of 2026 saw gross margin ease to 7.16 percent from 7.64 percent in the first quarter, the company has already locked in construction material prices and most of its backlog consists of private-sector work with higher margins, so it is confident gross margin will stay within the target range. The new target price is based on a sum-of-the-parts valuation and implies upside of 33.16 percent.

Construction stocks rose, led by STECON and CK, after second-quarter 2026 results came in better than market expectations. STECON gained 4.40% to 19.00 baht on turnover of 519.31 million baht, while CK added 3.65% to 19.90 baht on turnover of 269.33 million baht. Kasikorn Securities said STECON posted normalised profit of 910 million baht in the second quarter of 2026, up 374% from a year earlier and 488% from the previous quarter, slightly above expectations. Its backlog stood at 114 billion baht, supporting revenue for about three years, with new work expected to accelerate in the second half of 2026 to support a new-work target of 50 billion baht. Kasikorn Securities maintained a buy rating with a target price of 20.62 baht. Meanwhile, Pi Securities kept a buy rating on CK, saying second-quarter 2026 net profit beat expectations at 800 million baht, prompting it to raise full-year 2026 profit by 5% to 2.237 billion baht. It maintained revenue at 44.803 billion baht and assessed fair value at 23.1 baht. CK had a backlog of 146.305 billion baht at the end of the first half of 2026 and targets new work of more than 249 billion baht from large government projects in the future.

Stecon Group reported second-quarter 2569 net profit of 911 million baht, up 160% from the previous quarter and close to analyst expectations. The main driver was recognition of 736 million baht in dividends from its investment in GULF, while construction revenue rose 29% from the previous quarter to 9.345 billion baht, helped by accelerated revenue recognition from major backlog projects including the Orange Line, Purple Line, Den Chai double-track railway, data centers, the Clean Fuel Project, waste-to-energy plants, and Bangkok Mall. Data center projects played a particularly important role in this quarter's revenue growth. The construction gross margin was 7.16%, down slightly from the first quarter of 2569 due to pressure from higher material costs and oil prices, but this was partly offset by a higher share of high-margin private-sector work and efficient cost management. Selling and administrative expenses as a share of revenue fell to 3.2% from 4.1% in the first quarter of 2569, reflecting economies of scale after revenue increased. First-half 2569 construction revenue accounted for 47% of the full-year revenue estimate of 35 billion baht, but the research team is not concerned because construction contractors typically accelerate revenue recognition in the second half, and management has maintained its full-year revenue target. A key issue to monitor is growth in new backlog, especially data center work, which is becoming an important growth engine for STECON. The company is currently bidding for three additional data center projects worth about 22.5 billion baht in total, supporting its 2569 new work target of 50 billion baht. In addition, the return of public-sector investment after the new fiscal year begins in the fourth quarter of 2569 will be another important factor supporting backlog and earnings growth going forward. Asia Plus Securities maintains a positive view on STECON because the company is transitioning from a traditional construction contractor to a business with diversified revenue sources and long-term value-creation potential, especially in data centers, which give the company access to high-margin work and align with private-sector investment megatrends. With a strong order backlog and growth opportunities from future new projects, the research team keeps a buy rating on STECON with a 2570 target price of 23.00 baht based on sum-of-the-parts valuation, implying upside of about 39% from the current price.

Kasikorn Securities recommends BH and STECON as today's standout stocks, while assessing the SET Index range at 1,600 to 1,625 points after yesterday's close at 1,609.76 points, down 11.86 points or 0.73 percent, with selling pressure from foreign investors amid pressure from the 10-year US Treasury yield at around 4.65 percent and ongoing uncertainty in the Middle East, which kept Brent crude oil prices above 90 dollars per barrel. For BH, or Bangkok Dusit Medical Services Public Company Limited, Kasikorn gives a target price of 204 baht and expects second-quarter net profit for fiscal year 2026 at 1.89 billion baht, up 6 percent from the previous quarter and 2 percent from a year earlier. First-half net profit for 2026 is estimated at about 4 billion baht, up 100 percent from a year earlier and above expectations, with foreign patients remaining the main revenue driver, rising 3.8 percent year on year. For STECON, or Stecon Group Public Company Limited, Kasikorn gives a target price of 20.62 baht and expects second-quarter net profit for 2026 at 910 million baht, up 374 percent from a year earlier and 488 percent from the previous quarter, slightly above expectations, supported by dividend income from GULF. Excluding that dividend item, core profit was still higher than expected. The company has a backlog of about 114 billion baht, supporting revenue for around three years, and targets new contracts in 2026 of about 50 billion baht.

The Office of the National Economic and Social Development Council reported that gross domestic product in the second quarter of 2026 expanded 1.9% from a year earlier, slowing from 2.8% in the first quarter but above the market forecast of 1.7%. The main support came from private investment, which grew strongly in line with investment promotion applications, while private consumption slowed to 1.9% from 3.3% in the previous quarter amid higher domestic energy prices, and government spending was weak because disbursement had already been accelerated earlier. Yuanta Securities expects consumption to recover clearly in the third quarter from the full-quarter impact of the Thai Chuay Thai Plus measures, and government spending to accelerate toward the end of the fiscal year. It maintains a positive view on construction contractors, power plants, industrial estates, retail, and food and beverage, citing stocks CK, STECON, GUNKUL, GULF, FORTH, SAMART, EPG, BJC, CPALL and CBG. The planning agency also raised its GDP forecast for this year to 2.0 to 2.5% from 1.5 to 2.5%, and lowered its inflation forecast to 1.5 to 2.0% from 2.0 to 3.0%, which helps ease pressure on monetary policy tightening.

Stecon Group reported second-quarter 2026 net profit of 911 million baht, up 76% from the same period last year, with first-half profit of 1.258 billion baht, up 45% year-on-year, driven by higher gross profit from cost and expense control. Meanwhile, STP&I swung to a net loss of 22 million baht in the second quarter of 2026, compared with a net profit of 83 million baht a year earlier, after recognising a 57 million baht share of loss from an investment in a joint venture. The main cause was the Monsoon project, a 600-megawatt wind power plant in Laos, where the second quarter of 2026 was a low-wind period, leaving revenue insufficient to cover expenses and financing costs, resulting in a recognised share of loss of 65 million baht.

Stecon Group Public Company Limited, or STECON, reported second-quarter net profit for 2026 of 910.96 million baht, up 77.89% from the same period last year, driven by revenue growth from data center and clean energy projects together with cost and expense control, which improved profitability. Total revenue for the second quarter of 2026 was 10.26 billion baht, up 16.5%, with construction contract revenue of 9.35 billion baht, up 7.2%, while sales and service revenue was 132.3 million baht, up 154.9%, after a subsidiary secured new projects and began recognizing revenue in the quarter. Total costs and expenses were 9.09 billion baht, up 11.9%, a slower rate than revenue growth, while administrative expenses were 301.3 million baht, down 72.0 million baht. As a result, gross profit was 699.5 million baht, representing a gross margin of 7.4%, and profit before income tax expense was 1.07 billion baht, representing a margin of 10.4%. The company also recorded a share of loss from investments in associates and joint ventures of 29.0 million baht in the second quarter of 2026, while the six-month period had a share of loss of 58.9 million baht, down 99.0 million baht from the same period last year, mainly due to the reclassification of investments in Northern and Eastern as equity instruments measured at fair value through other comprehensive income. For the first six months of 2026, the company posted net profit of 1.26 billion baht, up 47.82% from 853.60 million baht in the same period last year. Total revenue was 17.57 billion baht, up 12.8%, with construction contract revenue of 16.56 billion baht, up 9.1%, and sales and service revenue of 192.1 million baht, up 98.2%. In addition, the six-month period included dividend income of 736.5 million baht, another factor supporting performance. Total costs and expenses were 15.92 billion baht, up 10.8%, resulting in gross profit of 1.27 billion baht, representing a gross margin of 7.6%. As for financial position, as of 30 June 2026, the company had total assets of 63.49 billion baht, up 12.9% from the end of 2025, while total liabilities were 42.08 billion baht, up 7.4%, and total shareholders' equity rose 25.6% to 21.41 billion baht. The interest-bearing debt to equity ratio, excluding lease liabilities, was 0.47 times. For business direction, the company is moving forward with investment plans to build long-term recurring income and extend its new S-curve through five core business groups: construction support, clean energy, data centers, water management, and logistics, with particular focus on preparing to invest in data centers as well as power and water production and distribution projects to serve rising demand from data center customers.

Kasikorn Securities maintains buy ratings on CK and STECON, expecting strong second-quarter 2026 earnings and opportunities to secure major projects in the second half of the year. For CK, normalized profit is forecast at 725.7 million baht, down 1 percent from a year earlier but up 120.5 percent from the previous quarter. For STECON, normalized profit is forecast at 888.4 million baht, up 362.5 percent from a year earlier and 473.7 percent from the previous quarter. Excluding dividend income after tax, STECON's normalized operating profit is expected to be 225.8 million baht, up 17.6 percent from the same period last year and up 46 percent from the previous quarter. The target price for CK is 27.98 baht and for STECON 20.62 baht.

Stecon Group has successfully offered 3-year bonds worth a total of 5 billion baht, with subscriptions exceeding the target. Mr. Pakpoom Srichamni, Group CEO and Managing Director, revealed that the bonds carry a fixed interest rate of 3.30% per annum and have been assigned a credit rating of BBB+ by TRIS Rating. The offering, which took place from 3 to 5 August 2026, was supported by six arrangers: Bangkok Bank, Kasikornbank, CIMB Thai Bank, Siam Commercial Bank, Kiatnakin Phatra Securities, and Asia Plus Securities.

InnovestX Securities states that the signing of an MOU extending the employment period for over four million Myanmar workers in Thailand by another five years will help unlock the most critical labour bottleneck for Thailand's labour-intensive industrial sector. It also aims to push bilateral trade value to 12 billion US dollars, up from around 7.4 billion dollars, through accelerating border checkpoint restoration, using local currency payment systems, and promoting infrastructure investment, especially the Dawei Special Economic Zone project. However, risks remain from Western sanctions that could pressure the valuation of stocks with concessions or direct investment linked to the Myanmar military government. For short-term investment strategy, the firm recommends speculative trading based on news factors for beneficiary stocks, divided into two themes: groups directly benefiting from more stable labour cost management, such as CK, STECON, GFPT, BTG, CPF, and groups benefiting from a recovering border trade atmosphere, such as MEGA, TNP, CBG, OSP, CHG, BCH.

The research team at TTB Wealth Securities, or TTBWEALTH, has assessed the earnings outlook for the second quarter of 2026 and selected three standout stocks expected to deliver strong net profit growth. They are Praram 9 Hospital, or PR9, with an estimated net profit of 194 million baht, up 6 percent from a year earlier and 5 percent from the previous quarter, and a target price of 21 baht. Stecon Group, or STECON, with an estimated net profit of 759 million baht, surging 367 percent from a year earlier, driven by lower administrative expenses and profit sharing from the U-Tapao airport project, and a target price of 21 baht. And Ratchathani Leasing, or THANI, with an estimated net profit of 354 million baht, up 27 percent from a year earlier and 4 percent from the previous quarter, supported by good asset quality, lower financial costs, and higher loan origination, with a target price of 2.50 baht.

Analysts expect that the clarity of the new Data Center business regulations, which the government is preparing to approve, will help attract investment and benefit stocks in technology infrastructure, power, construction contracting, telecommunications, and industrial estates. The Board of Investment has already approved Data Center and Cloud Service projects worth over 958 billion baht. Power plant and utility groups such as WHAUP are expected to benefit from sales of industrial water and electrical systems, while GUNKUL, GULF, BGRIM, and STECON will gain from engineering systems, clean energy, and Data Center building construction. In the electronics sector, DELTA is highlighted as a standout stock due to demand for power supply systems and cooling technology for AI servers. HANA and KCE are supported by orders for high-end printed circuit boards, and WHA benefits from selling land in industrial estates to foreign investors. Additionally, BCPG is gaining from natural gas power plants in the United States that are seeing electricity demand from Data Centers, while INSET, ITEL, and SYMC have opportunities to undertake Data Center system installation, co-location services, and fiber optic network projects.

Analysts at Yuanta Securities Thailand, or YUANTA, say the formation of five working groups under the Joint Public-Private Sector Consultative Committee, or Krung-Or, will boost money circulating in the economy by as much as 600 billion to 800 billion baht per year if the country's investment ratio can be lifted from the current 22 to 23 percent to 30 percent of gross domestic product as targeted. The plan is divided into three phases: a short-term phase of six months, a medium-term phase of two years, and a long-term phase of four years, covering strategies in investment, artificial intelligence and digital technology, the green economy, finance, and healthcare. Stocks expected to benefit directly include GULF, GUNKUL, KTB, STECON, CK, FORTH, SKY, PIS, DITTO, SAMART, and TASCO, especially power-plant operators and companies likely to win project work from the public sector. Analysts recommend closely monitoring progress in the first six months, because if the plan is executed as scheduled it will help restore confidence and support long-term earnings growth.

Krungsri Securities says True IDC is in talks to borrow around two billion US dollars, or about 67 billion baht, to invest in a new data centre on the outskirts of Bangkok, according to a Bloomberg report. The research team estimates the sum represents 0.35 percent of GDP and will be positive for the Thai stock market, as well as stocks in related investment themes. Among the groups expected to benefit first are banks KBANK and KTB, contractors STECON, PYLON, and INSET, along with TRUE as a company within the same group.

Kasikorn Securities says the government is pressing ahead with infrastructure development under the Missing Link plan, accelerating the upgrade of Ranong Port and building a Chumphon–Ranong railway to establish a trade gateway on the Andaman coast, alongside developing the economic hinterland behind the port. The research team views this as positive for construction contractors and industrial estates, namely STECON, CK, AMATA and WHA, if the projects are pushed forward concretely.

Stecon Group Public Company Limited, or STECON, is preparing to offer new debentures to the general public for the first time. The secured debentures have a three-year maturity and carry an interest rate of 3.30 percent per annum. The minimum subscription is 100,000 baht, and the offering will take place from 3 to 5 August 2026 through six arrangers: Bangkok Bank, Kasikornbank, Siam Commercial Bank, CIMB Thai Bank, Kiatnakin Phatra Securities, and Asia Plus Securities. The debentures have been assigned a credit rating of BBB+ with a stable outlook by TRIS Rating, reflecting the company's strong market position in the construction contracting business. As of the end of the first quarter of 2026, the company had a backlog worth approximately 126.89 billion baht and is targeting 50 billion baht in new contracts this year. Meanwhile, large-scale projects approved by the cabinet total over 400 billion baht. Proceeds from this debenture offering will be used to invest in new businesses to generate recurring income and reduce revenue volatility.

The committee studying the Land Bridge project concluded that the transport system development linking the Gulf of Thailand and the Andaman Sea has a low probability of proceeding, due to budget burden risks and broad uncertainties. This direction aligns with the prime minister's earlier order to delay the project. Research analysts assess that the shift in transport infrastructure investment will focus on missing links, the Thai-Chinese railway, and certain new deep-sea ports proposed by the private sector, pointing to clearer public-private cooperation. Fiscal constraints mean the government must rely more on private investment, and scaling down projects from very large to medium or small will enable faster and more efficient investment. This trend is positive for the Thai stock market, boosting investment momentum and supporting upside potential for gross domestic product. Benefiting stocks include banking names such as KTB and KBANK, contractors like STECON and PYLON, industrial estate groups such as AMATA and WHA, and logistics players seeking new investment projects like BEM and BTS.

Krungsri Securities, or KSS, assesses that the Thai stock market is in a consolidation phase, with resistance framed at 1,650 and 1,665 points and support at 1,630 and 1,626 points. This comes amid pressure from Brent crude oil prices surging past $100 per barrel, the US 10-year Treasury yield climbing to test 4.7%, its highest in 1 year and 7 months, and the baht weakening to a 15-month low of 33.82 per dollar. Also weighing are US import tariff measures under Section 301 at rates of 10 to 12.5% on 60 countries, effective from 24 July 2026, though the impact on Thailand is limited as key exports like electronic parts and semiconductors are not covered. KSS expects stocks in the energy, energy security, and commercial banking sectors to be the main pillars supporting the index. It recommends standout energy stocks including PTT, PTTEP, BCP, TOP, and SPRC. In banking, it recommends KBANK and KTB. In telecoms, it recommends ADVANC and TRUE. In construction, it recommends STECON, PYLON, and INSET. In industrial estates, it recommends AMATA and WHA.

Investment promotion applications filed with the BOI in the first half of 2026 totaled 1.4 trillion baht, a 37% increase compared to the same period last year. In the second quarter, applications reached 0.46 trillion baht, which, while slowing from the previous quarter, remained above the quarterly average of 0.33 trillion baht seen over the past four to five years. The growth was driven by large-scale investment projects in AI and data centers, as well as other targeted industries such as electronics, electrical appliances, and food processing. Krungsri Securities Research views the rise in BOI applications as positive for the country's economic outlook and the Thai stock market under the investment cycle theme, particularly for businesses in new global S-curves like AI, data centers, and green energy. Coupled with the government's investment acceleration measures, projects are expected to be approved and implemented more quickly, benefiting overall economic activity and supporting supply chain sectors such as industrial estates like AMATA, construction contractors like STECON and PYLON, and banking groups like KBANK, KTB, and KKP.

STECON reported first quarter 2026 results with revenue of 7.3 billion baht, an increase of 11.8% from the same period last year, and maintained a gross profit margin of 7.8%, which is higher than the full-year target of 7%, reflecting cost management efficiency. The company expects revenue to accelerate in the next quarter and peak in the fourth quarter of 2026, driven by revenue recognition from large projects, as well as dividends from GULF coming in the second quarter, which will significantly support full-year profit. Currently, the company has a backlog of up to 123 billion baht, sufficient for revenue recognition for more than three years, and targets securing new contracts worth an additional 50 billion baht this year, supported by the recovery of public and private investment, especially mega projects such as high-speed rail, motorways, airports, as well as data center projects, power plants, and industrial factories. In addition, STECON is expanding into recurring income businesses through investments in data center infrastructure, water utilities, clean energy, and logistics, as well as joint investments in various projects, which enhance growth potential and elevate long-term enterprise value.

TTB Wealth Securities views the SET Index as still in a long-term uptrend, maintaining a year-end target of 1,720 points. New investment cycles from both the public and private sectors continue to be driving factors, while pointing to several signs of recovery. Bank lending has returned to growth for four consecutive months after contracting for nearly three years. Government budget disbursement has recovered from its low point, rising 8 percent year-on-year in the first nine months of fiscal year 2026. Money supply in the first five months of 2026 grew 5 percent year-on-year. Second-quarter 2026 earnings are trending better and have limited impact from the trade war, supporting upward earnings revisions for the SET. Domestic car sales are starting to recover, with the first five months of 2026 growing 14 percent year-on-year. Exports grew 17 percent year-on-year, and non-oil imports grew 35 percent year-on-year in the first five months of 2026. TTB Wealth has adjusted its Siam Senses portfolio, recommending 10 stocks: AMATA, AOT, BGRIM, CPN, DELTA, GLOBAL, GULF, KTB, STECON, and TRUE, with a buy recommendation for this round.

Phillip Securities expects the Thai stock index to trade sideways in a range of 1,640 to 1,665 points, pressured by a 2026 forward P/E of 16.7 times, close to the average since 2020 of 17.1 times, and banking stocks may face sell-on-fact pressure after earnings announcements. However, the TISA project measures will help prevent the index from falling deeply, and a rotation of funds out of banking stocks into real sector stocks is expected for speculation on second-quarter 2026 earnings, which are anticipated to be strong. The investment strategy is divided into four main themes: speculation on second-quarter 2026 earnings in stocks such as AMATA, CPALL, DELTA, HANA, ITC, KCE, MRDIY, MTC, OSP, QH, SAWAD, SCC, STECON, and TIDLOR; energy stocks in BCP, PTT, PTTEP, SPRC, and TOP; speculation on government measures or projects in BJC, CENTEL, CK, CPAXT, CRC, DOHOME, ERW, GLOBAL, HMPRO, LH, MINT, and SCC; and hopes for investment inflows from China in ADVANC, GUNKUL, GULF, ROJNA, WHA, and WHAUP.

STECON shares climbed 3.21% to 19.30 baht after KGI Securities Thailand projected second-quarter 2026 net profit would hit a yearly high of around 850 million baht, mainly supported by a GULF dividend of 3.25 baht per share, translating to total dividend income of about 736 million baht. The research team raised its 2026 net profit forecast by 6% to 1.74 billion baht and its 2027 forecast by 13.5% to 1.48 billion baht, while lifting the target price for STECON to 20.50 baht from 16.40 baht and maintaining a buy recommendation.

KGI Securities Thailand expects STECON's second-quarter 2026 profit to be the year's peak at approximately 850 million baht, mainly supported by a special dividend from GULF of 3.25 baht per share, totaling 736 million baht. First-half 2026 profit is forecast at around 1.2 billion baht, representing 68% of the full-year profit estimate. The company's backlog at the end of the first quarter of 2026 stood at roughly 123 billion baht, including the U-Tapao airport project worth 27 billion baht, and it recently secured new work valued at 435 million baht to upgrade the Bangkok Mass Transit Authority's electric bus business. The analyst has raised the 2026 gross margin assumption to 7.2% and lowered the selling and administrative expense-to-sales ratio to 3.6%, lifting the 2026 net profit estimate by 6% to 1.74 billion baht and the 2027 estimate by 13.5% to 1.48 billion baht, with 2027 revenue expected to grow 10%. Private investment trends are clearly recovering, especially in the digital sector, where the value of investment promotion applications to the BOI totaled 746 billion baht, up 394% year-on-year, and approved projects are worth around 623 billion baht, up 517%, to support the fast-growing data center market. STECON has therefore set up a new business unit to undertake data center construction, co-invest in high-potential projects, and provide integrated solutions. The analyst maintains a buy recommendation and raises the target price to 20.50 baht from 16.40 baht, based on a 2027 price-to-earnings ratio of 21 times.