InnovestX Securities has issued a positive assessment of Gulf Development Public Company Limited’s (SET: GULF) newly announced strategic partnership with Singapore’s Singtel Group to develop submarine cable connectivity between Thailand and Singapore, framing the move as a step that extends GULF’s digital infrastructure business across the full value chain — from upstream to downstream.
According to InnovestX, GULF has yet to disclose the total investment value of the project or the shareholding split between Gulf Edge and Singtel in the venture.
In the absence of official figures, InnovestX benchmarked the deal against similarly sized subsea cable projects in the region, citing the Asia Link Cable System (ALC) — a roughly 6,000-kilometre project previously co-invested in by Singtel — which carried a project value of approximately USD 300 million, or about THB 10,000–11,000 million.
Using this as a reference point, InnovestX estimates that the Vietnam-Thailand-Singapore (VTS) Cable System could generate a profit of approximately THB 500–1,000 million on a 100% equity basis following commercial operation date (COD) in 2030. The estimate is based on a project IRR of 10–14%, a 25-year project life, and an estimated investment of around THB 10,000 million.
InnovestX maintained its OUTPERFORM rating on GULF, with a target price of THB 78, based on a discounted cash flow (DCF) valuation.
