Telecom stocks have resurfaced as top picks for investors in 2026, with Advanced Info Service PCL (SET: ADVANC) and True Corporation PCL (SET: TRUE) drawing particular attention. Analysts attribute this momentum to strong projected second-quarter results, backed by continued growth in mobile and broadband revenues and effective cost management, which are expected to drive significant year-on-year profit growth.
Dividend yields in the sector remain attractive, estimated at 3.79% – 4.93% for 2026—an appealing range amid stable interest rates. This positions Thai telecom stocks as compelling for investors seeking both capital appreciation and reliable dividend income.
Kasikorn Securities (KS) has maintained an “Outperform” rating on TRUE, with a year-end target price of THB 16.77. The company is forecasted to report 2Q26 net profit of THB 6.86 billion, and a core profit—excluding deferred tax—of THB 6.24 billion, up 77.4% year-on-year and 7.2% quarter-on-quarter.
Key growth factors include spectrum cost savings, a rebound in core revenue, and lower financial costs. TRUE’s profit turnaround is expected to continue, with core profit in H1 marking 48% of full-year estimates and a projected interim dividend of THB 0.14 per share.
Looking forward, TRUE’s net profit—which has risen from a net loss in 2024 to a net gain of THB 9.24 billion in 2025—is expected to jump to THB 23.9 billion in 2026, and THB 28.15 billion in 2027, with improving P/E ratios and dividend yields year-on-year.
ADVANC is poised to report a net profit of THB 13.6 billion for the second quarter of 2026, marking a 24% year-on-year growth and 1% increase from the previous quarter, according to projections by Krungsri Securities (KSS). The solid performance is largely driven by sustained growth in core revenue and effective control over sales, general, and administrative expenses (SG&A), which have boosted both annual and sequential results.
For the full year 2026, KSS estimates ADVANC’s core business revenue, excluding interconnection charges (IC), to reach THB 45.3 billion, up 5.6% from the prior year and 1% from the previous quarter. This growth is attributed to the steady expansion in both mobile and fixed broadband (FBB) segments, supported by rising net subscribers and growth in average revenue per user (ARPU). All principal business units—mobile, FBB, and enterprise—are contributing to quarterly improvements.
In addition, core service costs are expected to drop by 13% year-on-year, mainly thanks to lower leasing expenses, supporting stronger profit margins and continued performance throughout 2026.
Kasikorn has also reaffirmed its “Outperform” call for ADVANC, with a 2026 year-end target price of THB 385.34 per share, and expects another robust quarter when the company announces its Q2 results on August 6.
ADVANC’s 2Q26 core profit is estimated at THB 13.1 billion, a 19.7% year-on-year increase, driven by core service revenue growth and spectrum cost savings. However, this represents a 1.8% decline from the prior quarter due to higher content costs, mainly from Premier League broadcasting rights, and increased financial expenses linked to past special dividend payouts.
First-half 2026 core profit is projected at 26.4 billion baht—52.7% of the annual forecast. The company is expected to declare an interim dividend of 8.94 baht per share, reflecting a 100% payout and a dividend yield of around 4.93%.
Looking forward, KS expects ADVANC to maintain its 2026 targets of 3 – 5% growth in core service revenue and 2 – 4% EBITDA growth. The first-half results have already exceeded these targets, with core service revenue up 5.5% and EBITDA rising 6.2% year-on-year.
However, analysts caution that growth in the second half of 2026 may slow, owing to a high base effect from the second half of 2025, the end of economic stimulus measures, normalization of spectrum cost savings, and intensified competition from TRUE, which is seeking a greater market share.
While the outlook for ADVANC remains positive for the second and third quarters, concerns have emerged for Q4 performance if Thailand’s economy slows, given GDP growth is forecast at just 1% and inflation around 4% in 2026, potentially dampening consumer spending.
Despite a robust forecast for TRUE’s core profit and potential for increased dividend payouts, ADVANC is seen as having an edge due to its strong market share and consistent, high semi-annual dividends. Supporting ADVANC’s ratings are the resilience of its core service revenue, superior OPEX and CAPEX management, and strategic support from Singtel, which holds a 23.31% stake. ADVANC has also raised its dividend payout ratio from 95% to 100% of net profit. So far this year, shares have risen 16%, closing the gap with TRUE’s 16.5% gain.
