STPI is currently ramping up module fabrication for Inpex Corporation of Japan, an LNG importer who is
building its Ichthys project Onshore LNG Facilities in northern Australia. STPI’s contract is worth US$740
million, and will generate revenues of around $400 million in 2014, with net margins of 25%. At the
current price (THB14.3), it trades at 7.1x P/E 2014, with EPS growth of 100% .
Due to the widespread adoption of hydraulic fracturing and directional drilling (fracking) technology, and
large offshore finds of deep water gas, there are hundreds of billions of dollars of LNG development
projects around the world, providing a huge opportunity for STPI. The Managing Director mentioned
that there are several of these large projects that have asked him to bid on contracts worth $750 million
to $1 billion each, so demand is very strong.
STPI recently bought additional yard space near the Thai Navy port in Sattahip, which will add about
25% to their production capacity