Kiatnakin Phatra Securities (KKPS) maintained its ‘Buy’ recommendation on Advanced Info Service Public Company Limited (SET: ADVANC) with a target price of THB 428.00, expecting its planned investment in Shenington Investments (SHEN) to be non-earnings-dilutive.
ADVANC announced that it will acquire a 49% stake in SHEN from Asia Mobile Holdings for $43.35 million, or approximately THB 1.46 billion. The acquisition includes rights to receive interest and principal payments on shareholder loans.
SHEN holds a 49% stake in Lao Telecommunication (LTC), one of Laos’s leading mobile operators, with the remaining 51% owned by the Laos government. The transaction will give ADVANC an indirect interest of approximately 24% in LTC. Gulf Space Technology Public Company Limited (SET: GST) will retain its 51% stake in SHEN.
The deal is expected to be completed by the end of 2026.
KKPS expects shareholder-loan interest income to offset ADVANC’s share of SHEN’s losses. ADVANC will recognize its 49% share of SHEN’s earnings under the equity method. Based on SHEN’s 2025 net loss of $2.2 million, this would translate into an annual share of losses of approximately THB 37 million.
However, LTC itself remains profitable. SHEN recorded $11.7 million in profit contributions from LTC in 2025, while its overall net loss was mainly attributable to interest and other expenses. Management expects interest income from the acquired shareholder loans to offset the losses recognized from SHEN.
Over the next three to five years, management anticipates greater synergies between ADVANC and LTC through network improvements, operational efficiency and cost savings.
KKPS also sees long-term growth potential, citing Laos’s relatively low mobile penetration rate of around 57% and household broadband penetration of just 14% in 2025.
Nevertheless, management has not disclosed whether ADVANC will need to inject additional capital into LTC to support future expansion. KKPS identified this as a key issue to monitor.
