On Friday at 3:25 PM (Bangkok time), the share price of Advanced Info Service Public Company Limited (SET: ADVANC) expanded by 2.31% or THB 7.00 to THB 310.00, with a trading value of THB 2.07 billion.
True Corporation Public Company Limited (SET: TRUE) surged by 2.68% or THB 0.30 to THB 11.50, with a trading value of THB 1.55 billion.
Krungsri Securities (KSS) notes that, in the wake of a new policy adopted by the National Broadcasting and Telecommunications Commission (NBTC) to collaborate with mobile operators for the rollout of the ‘Half-Price Internet’ project, the telecommunications sector is set to benefit.
The initiative targets 13.4 million holders of the state welfare card, offering internet access at 160 baht per month (including VAT) for 40 GB, spread across three billing cycles. This will be funded by the Broadcasting and Telecommunications Research and Development Fund for Public Interest.
KSS estimates the project’s total budget at approximately 6.4 billion baht, which is poised to lift revenue for mobile operators ADVANC and TRUE. Most of these funds are expected to flow directly to profits, providing an upside catalyst for the sector and driving renewed investment interest in telecom stocks.
The boost in earnings is anticipated to become evident in 3Q25 and continue into subsequent periods. Krungsri Securities continues to recommend a ‘Buy’ rating on both ADVANC and TRUE.
Additionally, KSS projects that ADVANC’s core profit in the third quarter of 2025 will hit a record high since 2015, reaching 11.1 billion baht. This performance will be supported by a 6.8% year-on-year and 1.4% quarter-on-quarter increase in main revenue (excluding IC) to 43.5 billion baht, fueled by growth in both mobile and fixed broadband (FBB) services driven by user additions and higher ARPU. Enterprise customer revenues are also seen rising as new projects launch.
On the cost side, service costs are forecast to decline by 6.8% year-on-year and 7.4% from the previous quarter, following reductions in network leasing fees to National Telecom Public Company Limited (NT) and lower depreciation expenses. SG&A costs are also expected to decrease by 12% year-on-year due to the absence of bonus provisions, despite a marginal 1% quarter-on-quarter uptick. Interest expenses are expected to hold steady from the previous quarter, given no new debt repayments.
Krungsri Securities maintains a ‘Buy’ rating on ADVANC, with a target price of THB 350 per share.
