Maybank Securities (Thailand) gives a ‘Buy’ recommendation for Advanced Info Service Public Company Limited (SET: ADVANC), citing robust growth prospects for 2027. This follows a meeting with Ms. Somruetai Tantakitti, Head of Investor Relations, Compliance, and Business Sustainability at ADVANC, who provided insights to 12 investors on 10 November.
Key highlights for 2027 include anticipated strong revenue growth, a stable EBITDA margin, and expectations that Starlink’s entry will not pose significant risks to Thailand’s telecom sector. Maybank maintains a target price of THB 387 for ADVANC, based on a SoTP valuation. The firm expects core profit to rise by 13% YoY in 4Q26 and 7% YoY overall in 2027, with a dividend yield estimated above 5% for 2026-27.
ADVANC projects mobile services revenue to outpace GDP growth in 2027, driven by double-digit data usage growth and increased uptake of entertainment packages. Fixed Broadband (FBB) expansion is set to continue, with 50,000-60,000 new subscribers per quarter and a higher proportion opting for packages priced at THB 580-590 per month, compared to 3Q26’s ARPU of THB 536.
Enterprise business revenue is expected to post double-digit growth as well. Maybank forecasts revenue from Mobile/FBB/Enterprise segments to grow 2.3%, 7.3%, and 10% respectively, resulting in an overall revenue growth of 3.7% in 2027 (down from 5.6% in 2026).
Despite cost pressures from higher network operating expenses and the planned FBB brand consolidation in 1Q27, ADVANC aims to maintain its EBITDA margin near current levels, consistent with Maybank’s estimates of 55.7% in 2026 and 55.8% in 2027. The increased operating cost stems from ongoing investments to boost network capacity and maintain quality leadership amid surging data traffic.
On competition from Low Earth Orbit (LEO) satellite broadband, ADVANC remains unconcerned, asserting that Thailand’s terrestrial network coverage is already very strong. Management views LEO satellites’ direct-to-device services as complementing—rather than replacing—terrestrial coverage, mainly aiding coverage in remote or maritime areas.
Currently, mobile networks cover more than 98% of the population, and ADVANC continues to expand, recently launching “Sea First Coverage” to extend 5G signals to maritime routes and islands up to 60 km offshore using Sub-1GHz Massive MIMO technology.
