STOCKS NEWS THAILAND-Ch Karnchang at 7-yr high; Laos dam to boost 2013 earnings

Shares in builder Ch Karnchang Pcl hit a seven-year high, outperforming the broader stock market , on expectations it would turn to a net profit next year helped by a hydropower project in Laos and infrastructure projects at home.

At the midsession break of 0530 GMT, Ch Karnchang shares were up 4.9 percent at 12.9 baht, having hit 13 baht, the highest since January 2006. The main SET index was up 0.25 percent.

The company's backlog rose by 183 percent from the end of last year, mainly due to the 76-billion-baht ($2.48 billion)Xayaburi dam project, exceeding that of peer Sino-Thai Engineering Construction Pcl and Italian-Thai Development Pcl , Broker Krungsri Securities said.

The broker rated the stock 'trading', with a target price of 14 baht. It expected Ch Karnchang's backlog to expand further next year.

"CK's strong experience in state projects will give it an edge over its rivals in obtaining projects to be put up for bid next year. This will result in a significant increase in backlog and help core 2013 earnings turn to growth after seven years of losses," it said.

"However, as CK's weak financial position may limit its ability to obtain project financing, we have a trading rating on the stock," it said.