ALT Telecom Public Company Limited

ALT Telecom Public Company Limited, or ALT, disclosed that it is in negotiations for additional deals with global-tier customers, the Global Hyperscalers, in the fourth quarter of 2026, after signing network and digital infrastructure lease contracts worth a total of approximately 2 billion baht in the third quarter of 2026, with a contract term of 20 years. Preeyaporn Tangpaosak, Managing Director, told the Stock Vision news team that the company targets double-digit growth in revenue in the second half of 2026, driven by recurring revenue recognition from its existing network. The expansion of its large-customer base has raised the value of work awaiting revenue recognition, or backlog, for the group from 5.115 billion baht as of the second quarter of 2026 to approximately 6.9 billion baht in September 2026. The company is also proceeding with bids for smart grid power network systems and AMI smart meter installation work for the Provincial Electricity Authority and the Metropolitan Electricity Authority, as well as government work in security and digital fields, with a combined value of several billion baht. It is also pushing to connect networks in the Eastern Economic Corridor, or EEC, with data centers in Bangkok and overseas, setting a target internal rate of return, or IRR, for new projects of no less than 10 to 15 percent. The company sees three key drivers supporting revenue and profit growth over the next 12 to 18 months: the data center and AI trend, growth in smart meter and smart grid work, and margin expansion from operating leverage.

Shares of ALT Telecom, or ALT, rose 3.01% to 1.71 baht at 10:02 a.m. after the company signed a contract for a fiber optic network project along the Bangkok-EEC route linked to data centers, with a total value of approximately 2 billion baht, and it will begin recognizing revenue in the middle of next year. KGI Securities (Thailand) said in an analysis, giving a base target price of 3.0 baht, that it expects ALT to be one of the stocks benefiting from the unlocking of the PDP2026 plan and data centers this October. It also expects that the investment project to replace smart meters to support Thailand's energy transition will be an upside. Currently ALT holds a 40% stake in Energy Max, which operates a smart meter business, while the other 50% is held by PIS, a subsidiary of SKY, and it is expected that in the third quarter of 2026 there is a chance of recording an extraordinary profit from selling Energy Max shares to PIS. It estimates support at 1.65 baht and resistance at 1.71-1.75 baht; if this resistance range is broken, the next resistance is estimated at 1.80-1.90 baht, with a stop loss at 1.60 baht.

The government is preparing to invest in a smart grid system, or intelligent power network, with short-term approval expected for a pilot project budget of approximately 10 billion to 20 billion baht, drawn from the 200 billion baht energy transition allocation under the 400 billion baht emergency loan decree. Concrete progress is expected to begin this year. Naphan Chaisaen, Deputy Managing Director of Research and a fundamental investment analyst covering the capital market at Bualuang Securities, told Than Hoon that the medium-term smart grid roadmap for 2022 to 2031 consists of five pillars. The first is Demand Response, which will replace household electricity meters with millions of smart meters, starting in high-usage areas such as Bangkok, its vicinity, major cities, and industrial estates in Rayong and Chachoengsao. Companies with potential in this area are FORTH, SKY, INSET, ALT, and PCC. Next is RE Forecasting, which involves system integrators such as TKC, SECURE, and SAMART. Then comes Microgrid and Prosumer, with GUNKUL and BGRIM. Next is ESS, or energy storage systems, with EA and GPSC. Finally, EV Integration involves FORTH and EA. Investment in the smart grid can also be accelerated without waiting for full clarity on the new Power Development Plan, and it will serve as key infrastructure to support the massive electricity consumption of data centers in the future without affecting electricity costs or the stability of power supply for the general public.

Bualuang Securities released an analysis stating that the development of Thailand's smart grid is nearing a turning point, moving from a phase focused on long-term roadmaps toward rule-setting, pilot project implementation, and greater private-sector participation. The medium-term smart grid drive plan for 2022-2031 comprises 5 pillars: Demand Response and Energy Management Systems, or DR & EMS, which accounts for roughly 30% of the budget; Renewable Energy Forecasting, or RE Forecasting, about 10%; Microgrid and Prosumer, about 20%; Energy Storage Systems, or ESS, about 25%; and EV Integration, about 15%. The analysis states that stocks that could benefit under the DR & EMS pillar include SKY, PIS, FORTH, PCC and ALT, while the RE Forecasting pillar includes TKC and SAMART. The Microgrid & Prosumer pillar includes BGRIM, the ESS pillar includes EA, GPSC, GULF and EGCO, and the EV Integration pillar includes FORTH and EA. Bualuang Securities takes the view that heavy investment in ESS and Microgrid should not be rushed from the early stage, because committing large amounts of capital to batteries, hardware and EPC work before pricing mechanisms and service markets are clear carries the risk of assets being underutilized. Meanwhile, DR/EMS forecasting and EV Integration require less capital and open up opportunities to generate revenue from platforms, service fees and recurring income.

ALT Telecom Public Company Limited, or ALT, disclosed that its business outlook for the second half of 2026 will continue to grow on rising demand for fiber networks and submarine cables driven by the expansion of data centers, cloud and AI. The company targets double-digit revenue growth in the second half, supported by recurring revenue recognition. ALT recently signed additional network leasing contracts with global hyperscaler customers, lifting its backlog to approximately 6.9 billion baht, up from 5.115 billion baht in the second quarter of 2026. It expects to gradually recognize revenue from the backlog and new work at an average of 300 to 350 million baht per quarter, with an average gross margin of about 18% to 23%. The business is split roughly 50% network infrastructure and services and 50% system integration, EPC, smart energy and smart grid. The company plans to expand cable landing station connection points to accommodate international submarine cables and link its network into the Eastern Economic Corridor, one of the region's target areas for data center investment. Meanwhile, businesses in its group and joint ventures have a project pipeline under negotiation or awaiting bidding worth about 500 million to 1 billion baht, with profit sharing expected to begin in the fourth quarter of 2027. In its solar private PPA business, about 17 megawatts of projects have already reached commercial operation. As for opportunities from the Smart Grid Master Plan of the Provincial Electricity Authority and the Metropolitan Electricity Authority, which will gradually replace meters with smart meters across millions of households, ALT is ready to join bids for network and communications system installation for smart meters and advanced metering infrastructure worth several billion baht in total. The company has set capital expenditure of about 500 million to 1 billion baht per year, focused on fiber and submarine businesses, with an average internal rate of return of no less than 10% to 15%, and aims to keep its debt-to-equity ratio below 1.5 times, from about 1.57 times currently. It is also pressing ahead with a business restructuring under the JUMP+ plan, targeting an increase in the share of recurring income from 47% in the second half of 2026 to 60% of total revenue by 2028, and raising gross margin from 19.6% to 23% by 2028.