Thaicom Public Company Limited

Prime Minister and Interior Minister Anutin Charnvirakul held talks with Wouter van Wersch, Executive Vice President for International Affairs at Airbus, and Bert Porteman, a representative of Airbus Thailand, on ways to upgrade and expand cooperation between Thailand and Airbus in the aviation industry, space technology, human resource development, and clean energy. The Prime Minister affirmed the policy of promoting the aviation industry and future industries, and asked Airbus to consider broadening cooperation to cover more areas by building on the cooperation models the company has with other countries and extending them to Thailand. On clean energy, the Prime Minister proposed that Airbus promote the use of sustainable aviation fuel, or SAF, produced in Thailand, using Thai raw materials and agricultural output as part of the production chain. In addition, Airbus plans to establish a Center of Excellence in Thailand as a hub for developing knowledge, technology, and personnel, linking Airbus's global network to Thailand. The Prime Minister also proposed expanding cooperation in space technology and security, building on existing cooperation with the Geo-Informatics and Space Technology Development Agency, or GISTDA, and Thaicom Public Company Limited, as well as discussing cooperation with Thai Airways International Public Company Limited to support the goal of pushing Thailand to become the region's aviation hub.

Interlink Telecom Public Company Limited, or ITEL, disclosed that the National Broadcasting and Telecommunications Commission, or NBTC, has announced the lowest bidders for the high-speed internet procurement project in remote areas, Phase 3, or USO3. ITEL, together with partners, secured a total of three contracts: two contracts jointly with Thaicom and one contract with TKC covering the southern region. The project value attributable to ITEL alone is about 1.7 billion baht, with clarity on contract signing expected in the fourth quarter of 2026. The total contract value of the entire USO3 project stands at 5.42 billion baht, covering five regions nationwide. Following this award, the company's work in hand, or backlog, rises from about 2.2 billion baht to 3.9 billion baht. The project execution period is roughly five years, and revenue is expected to be gradually recognized through 2031. As for the outlook for the second half of 2026, the company expects continued growth from the first half, in which it already recorded revenue of about 1.36 billion baht. For the full year 2026, the company maintains its total revenue target at approximately 3.6 billion baht, up from about 2.86 billion baht last year. On the analyst side, Krungsri Securities Public Company Limited recommends buying ITEL shares with a target price of 2.00 baht, expecting revenue recognition to begin in the fourth quarter of 2026 and to help support a return to stronger profit growth in 2027.

True Internet Corporation, under True Corporation, or TRUE, is one of the winners of the auction for the project to provide universal basic telecommunications services and social services, Phase 3, or USO 3, which the NBTC announced on 11 September 2026. TRUE won 2 of 5 groups: the northern group, worth 1.25 billion baht, together with Infraset, or INSET, and the central group, worth 762 million baht, together with Wire and Wireless. As a result, the two projects have a combined contract value of approximately 2.01 billion baht. For the remaining 3 regions, the winners include groups whose members are Thaicom, or THCOM, Interlink Telecom, or ITEL, and Turnkey Communication Services, or TKC. The proportion held by TRUE in each joint venture group has not yet been disclosed. The financial benefit figures estimated from the full contract value therefore represent the upper bound, and the revenue actually recognised by TRUE may be lower than the estimate in line with its participation proportion in the project. Payment terms are divided into 2 phases. In the first phase, network planning and installation, payment is received in 3 installments within the first year after signing, accounting for 47% of the contract value. The other phase, 53%, is gradually recognised over 5 years. Tisco Securities expects the contract signing to take place in late 2026, leading TRUE to begin recognising revenue from the first-phase work in 2027 of approximately 945 million baht, or only 0.5% of its total revenue estimate of 192 billion baht, while revenue from the operating phase will begin to be gradually recognised from 2028. Although the auction result is a positive factor, the impact on estimates remains limited because government work carries relatively low margins. Assuming a net margin of 5%, the additional net profit would account for only 0.2% of the net profit estimate of 27.5 billion baht. Tisco Securities maintains its buy recommendation on TRUE with a fair value based on discounted cash flow of 16 baht per share, based on a weighted average cost of capital of 8.3%, equivalent to a 2026 price-to-earnings ratio of 23 times, below the 5-year historical average of 27 times.

The National Broadcasting and Telecommunications Commission, or NBTC, has announced the winners of the USO 3 auction, a procurement of high-speed internet services under the project to provide universal and social basic telecommunications services in areas that lack or still have inadequate coverage, for public health, public benefit, and security purposes. The project has a total value of 5.42 billion baht, divided into 5 contracts. A subsidiary of True Corporation Public Company Limited, or TRUE, was among the winners and secured 2 contracts worth a combined 2.01 billion baht. These comprise the northern region contract, valued at 1.25 billion baht, won in partnership with Infraset Public Company Limited, or INSET, under the joint venture name TI, and the central region contract, valued at 761.50 million baht, won in partnership with Wire and Wireless Company Limited under the joint venture name TW. Meanwhile, Interlink Telecom Public Company Limited, or ITEL, and Thaicom Public Company Limited, or THCOM, joined forces under the joint venture name TCI to win 2 contracts worth 2.45 billion baht: the northeastern region contract, valued at 1.88 billion baht, and the eastern and western regions contract, valued at 564 million baht. ITEL, together with Turnkey Communication Services Public Company Limited, or TKC, under the joint venture name Interlink TKC, won the southern region contract, valued at 965.70 million baht. Krungsri Securities noted that initially no USO 3 project has been factored into its calculations. Revenue recognition from USO 3 would amount to 950 million baht; applying a net profit margin of 15% would boost profit in 2027 by 71 million baht, and by 14 million baht from 2028 onward, which is considered very small compared with TRUE's profit level of 31 billion baht in 2027.

Asia Plus Securities said the TCI consortium, a partnership between THCOM and Interlink Telecom, or ITEL, has won two contracts in the Phase 3 USO auction, with a combined value of 2.448 billion baht. This breaks down into a contract for the northeastern region worth 1.884 billion baht and a contract for the eastern and western regions worth 564 million baht. Asia Plus views the news as positive for THCOM because it will bring in certain revenue over the five-year life of the contracts and will increase revenue compared with the earlier Phase 1 and Phase 2 edge-network projects, under which THCOM earned only satellite transponder service fees from the auction winners since it did not bid itself. In Phase 3, however, THCOM will earn both equipment installation revenue and satellite transponder service fees. Equipment installation is expected to take about two to three months, so revenue from this project should begin to be recognised in early 2027. That said, results for the third and fourth quarters of 2026 still look weak and the company is expected to remain in the red on normal operations, as no new customers have come in while existing customers, especially broadcasting service providers, are likely to cut usage further. Given the latest auction results, in which the company won work worth more than expected, Asia Plus has raised its 2027 profit forecast for THCOM to 729 million baht from an earlier estimate of 381 million baht, and lifted its 2027 target price to 11.80 baht from 11.30 baht using a discounted cash flow method. It also upgraded its recommendation to Buy from Trading, believing the market has already priced in the negatives, including the likely weak operating performance in the second half of 2026, while the Phase 3 edge network is a positive factor that should help the company swing to a profit in 2027 and support the share price in the near term.

Several companies announced business progress among today's stocks to watch. Gulf Energy Development, or GULF, signed power purchase agreements, or PPAs, for four wind power projects with a combined generating capacity of 346.5 megawatts with the Electricity Generating Authority of Thailand, or EGAT, pushing the company's Thai wind energy portfolio past 1,058.5 megawatts. All 14 projects are expected to reach commercial operation, or COD, by 2030, which will generate annual profit of 2 billion baht, while the latest four projects are set to add roughly 500 million baht per year in profit. KCE Electronics, or KCE, drew speculative interest on the chance of winning printed circuit board, or PCB, work to supply Tesla's Optimus robots. Management acknowledged the matter is under way but no conclusion has been reached, while brokers see a successful deal potentially lifting its P/E to 40 times and have raised their target price to 70 baht. Meanwhile, the National Broadcasting and Telecommunications Commission, or NBTC, announced the winners of the USO 3 auction with a combined value of 5,423.70 million baht, with THCOM and ITEL sweeping the two large areas worth a combined more than 2,448 million baht, while TRUE and INSET won the northern work worth 1,248.50 million baht, and ITEL and TKC took the southern work worth 965.70 million baht. Sky ICT, or SKY, was pleased that AOTGA awarded it two large projects spanning 25 years with a combined value of 67,300 million baht. The apron and ground support equipment service projects are expected to begin operating in the middle of next year, supporting earnings in 2027 with significant profit growth.

Thaicom Public Company Limited, or THCOM, unveiled its 2027 business plan, moving forward to expand into a full-service space technology provider. It will also change its name to Gulf Space Technology Public Company Limited and its stock ticker to GST, subject to shareholder approval at a meeting on 15 September 2026. In the satellite business, the company expects Thaicom 9 to begin service in the third quarter of 2027 after resolving technical issues. Thaicom 10, its largest satellite, has pre-sold about 50% of its capacity and will start service in the first half of 2029, delayed from the second half of 2028 due to the launch schedule. Meanwhile, Thaicom 4 will extend its service life until late 2026 to maintain revenue during the transition, with plans to temporarily migrate customers to Thaicom 6, Thaicom 7, Thaicom 8, and partner satellites. The company expects the USO Phase 3 project auction results in the third quarter of 2026, and combined with a new Indian customer, this will push Thaicom 6 and Thaicom 8 to near-full capacity utilization in 2027. For the second quarter of 2026, the company posted revenue of 497 million baht, down 7.1% year-on-year but up 9.7% quarter-on-quarter, with a net loss of 87 million baht, narrowing from a loss of 207 million baht in the second quarter of 2025. As of the end of the second quarter of 2026, cash stood at 3.116 billion baht, slightly down from 3.22 billion baht at the beginning of the year, due to 833 million baht spent on satellite construction and ground equipment.

Thaicom is set to rebrand as Gulf Space Technology to expand its business from a satellite operator to a full-spectrum space technology company. Chief Executive Officer Dr. Piyaawat Jariyasetthaphong revealed that the company will integrate geostationary and low Earth orbit satellites, while accelerating the expansion of Earth observation data services and developing a data platform to support the data center and AI businesses of Gulf Group. Most recently, it secured a contract from PTT to use satellite data for monitoring gas pipeline routes, and is in the process of seeking permission to build a ground station to provide broadband internet via LEO satellites in partnership with Amazon, as well as collaborating with Globalstar to offer direct-to-device services. On the satellite plan, Thaicom 4 will extend its lifespan until the end of 2026, Thaicom 9 is expected to begin service in the third quarter of 2027, and Thaicom 10 has been postponed to the first half of 2029, with 50% of its capacity already pre-sold.

THCOM shares climbed 5.66% to 11.20 baht after brokers revised target prices and recommendations. Krungsri Securities maintained a buy rating and raised its target price to 14.7 baht from 14.5 baht, citing a smaller-than-expected loss in the second quarter of 2026 and expectations that THCOM will win the USO Phase 3 auction in the third quarter of 2026, which would be a key profit driver in 2027 to 2028. Asia Plus Securities noted that THCOM posted a net loss of 87 million baht, but excluding extraordinary items the normalized loss was 88 million baht, better than market expectations. It raised its 2027 profit forecast by 12% to 381 million baht and upgraded the recommendation from sell to trading, with a target price of 11.30 baht.

Asia Plus Securities reports that THCOM posted a normalized loss of THB 88 million in the second quarter of 2026, better than the research team and market expectations of a loss of around THB 103 to 106 million, and an improvement from the normalized loss of THB 105 million in the first quarter of 2026. This was due to a lower share of loss from joint ventures, which fell to just THB 4 million from THB 23 million in the previous quarter. The research team has therefore revised up its earnings forecasts, reducing the projected normalized loss for 2026 from THB 478 million to THB 393 million, and raising the 2027 profit forecast by 12 percent to THB 381 million. It has also rolled forward its target price to 2027 at THB 11.30, and upgraded its recommendation from Sell to Trading, expecting earnings to turn profitable in 2027 driven by the Phase 3 border internet project auction.

Thaicom Public Company Limited, or THCOM, reported second-quarter 2026 results with a net loss attributable to the parent company narrowing to 87 million baht, down from a loss of 207 million baht in the second quarter of 2025, driven by lower net foreign exchange losses. In the second quarter of 2025, the company booked a net foreign exchange loss of 209 million baht from the appreciation of the baht against the US dollar. Total revenue from sales and services in the second quarter of 2026 came in at 497 million baht, up 9.7 percent from the first quarter of 2026, mainly due to higher satellite and related service revenue, particularly from the ground station expansion project for Globalstar and the antenna system and ground operations system project for GISTDA. However, compared with the second quarter of 2025, revenue fell 7.1 percent on a slowdown in the broadcast business and lower overseas revenue. In the overseas telephone service business, the company recognised a share of loss from joint venture investments of 4 million baht in the second quarter of 2026, down from 23 million baht in the first quarter of 2026 and 9 million baht in the second quarter of 2025, thanks to improved performance at Lao Telecommunications Public Company.