Maybank Securities (Thailand) has reiterated its “BUY” recommendation on Advanced Info Service Public Company Limited (SET: ADVANC), maintaining a sum-of-the-parts target price of THB 387, supported by projected earnings growth and attractive dividend yields.
The brokerage forecasts core profit growth of 18% in fiscal year 2026 and 7% in fiscal year 2027, driven by core-service revenue growth of approximately 6% and 4%, respectively, alongside operating leverage. It projects dividend yields of 5.2% and 5.6%, describing these as approximately one standard deviation above the five-year mean of 4.9%.
For the third quarter of 2026, with results due on November 3, Maybank expects core profit of THB 13.4 billion, up 11% year-on-year but down 2% quarter-on-quarter.
Annual earnings growth should be supported by a 5.2% increase in core-service revenue, 15% growth in handset sales and spectrum cost savings. However, a projected 9% quarterly rise in selling, general and administrative (SG&A) expenses, alongside a THB 206 million share of losses from CLICX Bank, is expected to weigh on sequential performance.
ADVANC holds a 39% stake in the virtual bank, which began operations on June 19, 2026. Maybank attributed the anticipated SG&A increase to a low comparison base following a reversal of corporate restructuring costs.
Core-service revenue is forecast to rise 0.9% QoQ, with mobile, fixed broadband and enterprise revenue increasing 0.6%, 1.0% and 4.0%, respectively.
Mobile revenue growth is expected to slow from 0.9% in the second quarter, reflecting the absence of English Premier League subscription revenue after May 24, 2026. In contrast, stronger sales efforts should lift quarterly fixed broadband revenue growth from 0.7% to 1.0%.
Maybank expects earnings momentum to recover in the fourth quarter, forecasting core profit growth of 10% YoY and 2% QoQ. The brokerage said this recovery could provide a re-rating catalyst.
Supporting factors include the mobile revenue high season, prepaid package adjustments implemented in March 2026, and seasonally strong handset sales, including the iPhone 18 Pro and Pro Max.
For FY2027, Maybank’s projected 7% core profit growth rests on 3.7% core-service revenue growth and relatively stable depreciation, amortization and SG&A expenses.
