Krungsri Securities (KSS) has reiterated its ‘Buy’ call on Advanced Info Service Public Company Limited (SET: ADVANC), maintaining a target price of THB 390 per share. The investment theme remains focused on the company’s strong dividend yield, supported by sustained earnings growth.
The brokerage projects ADVANC’s 1Q26 core earnings at THB 12.67 billion, representing a 20% increase year-on-year and a 2% rise from the previous quarter, primarily propelled by cost savings in network operations and depreciation.
Despite a robust annual comparison, quarterly net profit is expected to fall 11% due to the absence of a tax benefit that was present in the last quarter; ADVANC had reported an 8.6% effective tax rate in 4Q25.
Excluding the tax impact, 1Q26 core profit should show a 2% quarter-on-quarter improvement. Key drivers for the year-on-year earnings growth include rising revenues from both the mobile and fixed broadband (FBB) segments, alongside ongoing cost reductions.
For 1Q26, Krungsri assumes core revenue excluding interconnection charges will increase 6.7% year-on-year but drop slightly quarter-on-quarter to THB 44.7 billion, supported by growth in both subscriber numbers and average revenue per user (ARPU).
At the same time, core operating costs are expected to drop 8% year-on-year and 3% quarter-on-quarter to THB 22 billion, reflecting reduced network rental and depreciation expenses. Selling, general, and administrative (SG&A) expenses are forecasted to remain stable compared to the previous quarter but rise from a year earlier due to higher staffing costs.
Looking ahead for the rest of the year, Krungsri maintains its full-year forecast for ADVANC’s EPS to grow by 7.9% in 2026, with the first quarter’s earnings results expected to make up 25% of the annual projection.
Earnings momentum is anticipated to continue into 2Q26, supported by strategic adjustments to ADVANC’s data and call packages at THB 150 and THB 200 price points—mirroring industry trends set by True Corporation (TRUE).
This is expected to encourage customers to upgrade to higher-priced THB 250 packages, sustaining the upward trajectory in revenues and earnings. Overall, Krungsri remains positive on ADVANC due to its solid earnings cycle and attractive estimated dividend yield of 4.3% for 2026.
