Yuanta Securities is bullish on Roctec Global Public Company Limited (SET: ROCTEC), following its strong quarterly earnings, dubbing the stock as a ‘Forgotten Good Guy’ in the market. Despite not assigning a rating to the company, the house remains positive on ROCTEC’s performance in this upcoming quarter.
Yuanta noted that ROCTEC has reported a record-breaking financial performance for its third fiscal quarter (ending December 2025), with net profit reaching an all-time high. The company continues to demonstrate robust momentum, driven by the expansion of its digital solutions and strategic positioning within the BTS Group.
Record-Breaking Financials
For 3Q25/26, ROCTEC posted a net profit of 127 million baht, representing a 4% increase quarter-on-quarter (QoQ) and a staggering 50% growth year-on-year (YoY). Total revenue for the period rose to 917 million baht, up 27% YoY, bolstered by significant contributions from the ICT Solutions and Advertising sectors.
Growth Drivers: Digital Displays and Advertising
The primary engine of this growth was the Digital Display Solutions segment, which saw revenue skyrocket by 155% YoY to 296 million baht. This surge was attributed to major projects for advertising and transportation clients. Additionally, the Advertising business grew by 56% YoY, reaching 159 million baht, fueled by strong demand for “Street Furniture” outdoor media. The Transportation segment also remained steady, recording 265 million baht in revenue as it continues to install systems for the State Railway of Thailand (SRT).
Operational Efficiency vs. Margin Pressure
While revenue climbed, the Gross Profit Margin (GPM) moderated to 28.2%, down from 34.6% a year ago. This decline was largely due to the high volume of Digital Display projects, which typically carry lower margins. However, the company successfully offset this through disciplined cost management, reducing SG&A expenses by 26% YoY.
Future Outlook and Valuation
Yuanta expects a slight QoQ dip in 4Q25/26 as many large projects have already been recognized, but the YoY outlook remains strong. Yuanta Securities estimates the full-year 2025/26 net profit will fall within the 470–490 million baht range.
From a valuation perspective, analysts highlight that the stock is currently trading at a PER25/26 of 9.9x, which they believe does not yet reflect the company’s strong earnings growth and long-term regional potential under the BTS Group. Based on a target PER range of 12-15x, the base value for ROCTEC is estimated at THB 0.76–0.91 per share.
