Turnkey Communication Services PCL

The government is preparing to invest in a smart grid system, or intelligent power network, with short-term approval expected for a pilot project budget of approximately 10 billion to 20 billion baht, drawn from the 200 billion baht energy transition allocation under the 400 billion baht emergency loan decree. Concrete progress is expected to begin this year. Naphan Chaisaen, Deputy Managing Director of Research and a fundamental investment analyst covering the capital market at Bualuang Securities, told Than Hoon that the medium-term smart grid roadmap for 2022 to 2031 consists of five pillars. The first is Demand Response, which will replace household electricity meters with millions of smart meters, starting in high-usage areas such as Bangkok, its vicinity, major cities, and industrial estates in Rayong and Chachoengsao. Companies with potential in this area are FORTH, SKY, INSET, ALT, and PCC. Next is RE Forecasting, which involves system integrators such as TKC, SECURE, and SAMART. Then comes Microgrid and Prosumer, with GUNKUL and BGRIM. Next is ESS, or energy storage systems, with EA and GPSC. Finally, EV Integration involves FORTH and EA. Investment in the smart grid can also be accelerated without waiting for full clarity on the new Power Development Plan, and it will serve as key infrastructure to support the massive electricity consumption of data centers in the future without affecting electricity costs or the stability of power supply for the general public.

Bualuang Securities released an analysis stating that the development of Thailand's smart grid is nearing a turning point, moving from a phase focused on long-term roadmaps toward rule-setting, pilot project implementation, and greater private-sector participation. The medium-term smart grid drive plan for 2022-2031 comprises 5 pillars: Demand Response and Energy Management Systems, or DR & EMS, which accounts for roughly 30% of the budget; Renewable Energy Forecasting, or RE Forecasting, about 10%; Microgrid and Prosumer, about 20%; Energy Storage Systems, or ESS, about 25%; and EV Integration, about 15%. The analysis states that stocks that could benefit under the DR & EMS pillar include SKY, PIS, FORTH, PCC and ALT, while the RE Forecasting pillar includes TKC and SAMART. The Microgrid & Prosumer pillar includes BGRIM, the ESS pillar includes EA, GPSC, GULF and EGCO, and the EV Integration pillar includes FORTH and EA. Bualuang Securities takes the view that heavy investment in ESS and Microgrid should not be rushed from the early stage, because committing large amounts of capital to batteries, hardware and EPC work before pricing mechanisms and service markets are clear carries the risk of assets being underutilized. Meanwhile, DR/EMS forecasting and EV Integration require less capital and open up opportunities to generate revenue from platforms, service fees and recurring income.

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.

Shares in the beneficiaries of the USO 3 universal and social telecommunications service project rose in unison after the National Broadcasting and Telecommunications Commission announced the winners of all five packages, with a combined budget of 5.42 billion baht. Leading the gainers was Interlink Telecom, or ITEL, whose shares stood at 1.66 baht, up 0.18 baht, or 12.16%. Thaicom, or THCOM, was at 10.40 baht, up 0.40 baht, or 4.00%. Infraset, or INSET, and Turnkey Communication Services, or TKC, were both at 4.54 baht, up 0.14 baht, or 3.18%. On September 11, 2026, Trairat Viriyasirikul, deputy secretary-general of the NBTC and acting secretary-general, signed the announcement of the winners of the electronic bidding for high-speed internet services under the USO 3 project across five packages. Package 1, the northern region, went to the TI consortium, comprising True Internet Corporation under True Corporation, or TRUE, and INSET, at a price of 1.25 billion baht. Package 2, the northeastern region, went to the TCI consortium, comprising THCOM and ITEL, at a price of 1.88 billion baht. Package 3, the central region, went to the TW consortium, comprising True Internet Corporation and Wire and Wireless, at a price of 761.50 million baht. Package 4, the eastern and western regions, went to the TCI consortium, comprising THCOM and ITEL, at a price of 564.00 million baht. Package 5, the southern region, went to the Interlink TKC consortium, comprising ITEL and TKC, at a price of 965.70 million baht. Asia Plus Securities said in a research note that THCOM received a boost from teaming up with ITEL to win two of the five contracts in the Phase 3 border internet project, with a combined value of about 2.45 billion baht, and assessed that the bidding outcome would generate revenue with certainty throughout the five-year contract term, with revenue recognition expected to begin in early 2027. It raised its 2027 profit forecast from 381 million baht to 729 million baht and lifted its 2027 target price from 11.30 baht to 11.80 baht using the DCF method, while upgrading its recommendation from Trading to Buy.

Turnkey Communication Service Public Company Limited (TKC) revealed during its second quarter 2026 earnings call (OPPDAY) that the company is preparing to bid on new projects in the second half of the year with a total value of approximately 3.25 billion baht. It is also expanding into high-potential businesses including Cloud, Data Center, AI, Cyber Security, and Software Platform to support the growing government investment in digital infrastructure. The company aims to increase its recurring revenue share to 40% by 2029, up from the current level of about 25%, by promoting digital products such as PromptPost, Thai CA, and Digital Post ID (DID), as well as Cloud and Data Center services, to generate steady income and reduce volatility from project-based business.

Several mid- and small-cap stocks reported standout second-quarter profit growth. UNIX posted net profit of 117 million baht, up 244%, driven by sales of flexible film packaging and heavy-duty packaging. BLAND reported net profit of 193.11 million baht, up more than 100%, from property transfers and rental service income. NEO earned 209 million baht, up 161%, on market share gains in consumer products. NCAP posted a record profit of 196 million baht, up 34%, from expanding motorcycle hire-purchase lending. TKC earned 88 million baht, up more than threefold, from its AI cloud data center and cyber security business, with a backlog of 3.40 billion baht. TKN posted profit of 118 million baht, up 37%, and announced an interim dividend of 0.14 baht per share.

The Thai stock market closed at 1,609.06 points, down 5.30 points or 0.33%, with turnover of 81.76 billion baht. TKC reported second-quarter 2026 profit of 87.38 million baht, up 348%, and total revenue of 1.03 billion baht, up 148.67%, driven by the national learning management platform development project and the expansion of central government cloud services, with a backlog of 3.35 billion baht. The board of SO approved an interim dividend for the first six months of 2026 at 0.18 baht per share, with the stock trading ex-dividend on 27 August 2026 and payment on 10 September 2026, after total revenue of 1.43 billion baht and net profit of 102.92 million baht. WICE reported first-half service revenue of 2.8 billion baht, up 22.4%, and net profit of 48 million baht. Mono Streaming, a subsidiary of MONO, has chosen the AWS Asia Pacific Thailand Region to upgrade the infrastructure of its Monomax platform, which has more than 4 million registered users, in preparation for 4K streaming of the 2026/27 Premier League football season.

Sky ICT Public Company Limited, or SKY, has announced it is moving forward with its aviation technology business to drive long-term growth, with plans to develop an airport management platform and AI humanoid robots targeting the global market. Chief Executive Officer Sittidej Mayalarp revealed that the aviation industry is on an upswing, with global passenger numbers expected to grow by around 20 to 25 percent in 2026, while passenger numbers in Thailand are projected to grow by an average of 5 to 7 percent per year and will accelerate in the fourth quarter of 2026, which is the tourist season. Meanwhile, Airports of Thailand has plans to expand Suvarnabhumi Airport from a capacity of 60 million passengers per year to 75 million in the next three years, and to 140 million by 2034, which will be a factor driving increased demand for airport management technology. SKY is also developing the OCC Platform, a comprehensive ground handling management platform, with plans to launch it in international markets in 2030, while also pushing into the humanoid robot business through a joint venture with AGIBOT and TKC, in which SKY holds a 55 percent stake, to develop Thai-language AI and a large language model, aiming to deploy robots in actual airport operations by the end of this year. Currently, SKY provides technology systems at 13 airports nationwide, and as of the end of the first quarter of 2026, it had a backlog valued at 25.287 billion baht, with over 90 percent being long-term projects in the Technology as a Service segment.