Yuanta Securities (Thailand) wrote that Roctec Global Public Company Limited (SET: ROCTEC) reported a net profit of THB 113 million for 1Q26/27 (ending June 2026), up 6% quarter-on-quarter but down 6% year-on-year.
Total revenue reached THB 914 million, representing a 6% increase QoQ and 11% YoY, supported by solid growth in the Transportation segment (+18% QoQ, +37% YoY) from telecommunication system revenues for the State Railway of Thailand (SRT), installation and maintenance projects for Hong Kong’s mass transit, and steady performance in Digital Displays Solutions (+62% QoQ, +20% YoY) from major installation projects in Thailand.
The Integrated Technology segment, however, saw a decline (-28% QoQ, -8% YoY) due to project recognition timing differences, while Advertising slipped (-2% QoQ, -14% YoY) in tandem with a broader market slowdown.
Gross profit margin was 25.3%, down 133 basis points QoQ and 235 basis points YoY, attributed to revenue recognition timing and margin mix across different projects. Financial costs remained stable YoY, and the SG&A to sales ratio declined YoY, reflecting effective cost management.
Yuanta noted key takeaways from the SET Earnings Call on 28 August 2026, that ROCTEC reaffirmed its mid-single-digit revenue growth target for FY2026/27, with management expressing confidence in achieving this goal. As of July 2026, the company had already secured a backlog covering 69% of its FY2026/27 target, with 25% recognized in 1Q26/27. The pipeline remains robust, particularly for:
- Transportation: Ongoing projects in Thailand and Hong Kong, such as system upgrades for Hong Kong MTR, communication and safety systems for SRT, and interior work for BTS trains.
- Integrated Technology: Opportunities in network, server & storage, and cybersecurity projects for the Hong Kong government, as well as AI-powered service development.
- Digital Displays: Continued strong installation activity is expected.
ROCTEC is also focused on expanding its customer base and project pipeline, controlling costs, and conducting in-house R&D to enhance services and secure future contracts.
In Yuanta’s view, ROCTEC’s quarterly performance may fluctuate due to the project-based nature of the ICT Solutions business, but prospects for full-year profit growth in FY2026/27 remain intact given the healthy backlog and ongoing efficiency and innovation initiatives. Long-term upside could come from AI adoption and business footprint expansion in Thailand and Asia with BTS Group.
Based on the FY2026/27 revenue target of THB 3.6 billion (+5% YoY) and net profit margin assumption of 14% (vs. 13.9% in 2025/26), net profit is estimated at THB 504 million (+6% YoY). Using a PE ratio of 12-14x, the preliminary fair value is THB 0.74-0.87 per share, in line with the ICT sector average.
Notably, ROCTEC is not under coverage by Yuanta Securities. According to the brokerage, this analysis is for informational purposes as an investment idea only. Investors should perform further due diligence and consider their risk tolerance.
