Samart Corporation Public Company Limited

Yuanta Securities said today's Cabinet meeting has three interesting issues to watch. The first is the allocation of central budget funds for flood relief worth 2 billion baht. The second is infrastructure investment to build flood drainage channels that bypass the inner city, worth 160 to 200 billion baht, which is expected to be positive for the construction contractor, construction materials, and TEAMG groups. The third is a household solar project covering 1 million households, plus Smart Grid and Smart Meter, worth 70 billion baht under the 200 billion baht emergency loan decree to restructure energy. The research team views these issues as positive for GUNKUL, SSP, TRT, AKR, FORTH, and SAMART, among others.

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.

Samart Corporation Public Company Limited, or SAMART, is pressing forward in the Data & AI business and preparing to continuously bid for government work, after having many projects currently under tender. It is also expanding its Smart Meter and battery work by installing digital systems for the Provincial Electricity Authority (PEA) to support the transition to a smart grid. Mr. Rattanun Wilailak, Senior Manager of Business Development and Investor Relations at SAMART, told the Hoons Vision news team that most of the work remains projects from government agencies, a market that grows in line with the push for digital policy and the allocation of government technology budgets. The company places importance on applying Data and AI technology to improve operational efficiency, including data analysis, management, and reducing operating time, alongside training to develop personnel skills. For the battery systems and Smart Meter business, the company is in the process of carrying out a project to install new digital systems for PEA to switch from traditional electricity meters to digital meters, which is a key foundation for developing a smart grid. Taking the battery work and the Smart Meter project together, the current combined value is approximately 4,000 million baht.

SAMART's backlog has increased to approximately 16 billion baht after TEDA secured a high-voltage power station construction project worth 1.1 billion baht. Meanwhile, broker Yuanta maintains its normal profit forecast for 2026 at 730 million baht and keeps a Buy recommendation with a target price of 8.70 baht. The backlog at the end of Q2/2026 stood at 14.9 billion baht, up 3% from the previous quarter, comprising about 8 billion baht from SAMTEL, 6.7 billion baht from the Utility & Transport group, and 154 million baht from SDC. The company aims to increase its year-end backlog to 20 billion baht, with a total of 10 billion baht worth of projects pending bidding in the second half of the year. It also expects SAV to recover seasonally, while TEDA remains a key growth driver.

SAMART has announced that its subsidiary TEDA has signed contracts with PEA for two projects with a combined value of over 260 million baht. The first project involves the supply of 25 sets of power transformer condition monitoring equipment, valued at 103.897 million baht, signed on July 22, 2026, with delivery scheduled within 240 days. The second project involves the supply and installation of 115/11/11 kV power transformers and 11 kV switchgear in an indoor GIS substation system of 115/11 kV, valued at 160.1041 million baht, signed on August 24, 2026, with delivery scheduled by April 30, 2027. TEDA is a subsidiary in which SAMART holds an indirect stake of 94.35% through Can U-Trans Company Limited, and revenue will be recognized based on the percentage of completion.

Samart Corporation Public Company Limited, or SAMART, disclosed that TEDA Company Limited, an indirect subsidiary held 94.35% through Samart U-Trans Company Limited, has signed a joint venture agreement with Sinohydro Thailand Company Limited under the name The Consortium of TEDA and STC, with a 52.94% to 47.06% split. The consortium received a letter of acceptance from EGAT on 10 August 2026 for construction of the 500kV Den Chai high-voltage substation, and procurement and construction for upgrading the 500kV Mae Moh 3 high-voltage substation and the 500kV Tha Tako high-voltage substation, under the transmission system development project in Nan, Phrae and Uttaradit provinces to purchase electricity from projects in the Lao People's Democratic Republic. The total construction contract value is 2,080,714,368.75 baht, of which TEDA's portion is 1,101,537,663.00 baht and Sinohydro Thailand's portion is 979,176,705.75 baht. Construction is scheduled for completion within 24 months after submission of the letter of acceptance. TEDA is currently preparing documents for contract execution and signing.

SAMART is confident that second-half 2026 performance will accelerate sharply after first-half net profit of about 280 million baht. The company is moving ahead with new bidding worth a combined ten billion baht, lifting backlog from the current sixteen billion baht toward a target of twenty billion baht by the end of 2026. Meanwhile, SAV is poised to rebound in the third quarter of 2026 on lower fuel costs and recovering flights. SAMTEL is preparing to compete for new work worth nearly seven billion baht, while TEDA's strong performance gives profit a chance to beat its target.

The Office of the National Economic and Social Development Council reported that gross domestic product in the second quarter of 2026 expanded 1.9% from a year earlier, slowing from 2.8% in the first quarter but above the market forecast of 1.7%. The main support came from private investment, which grew strongly in line with investment promotion applications, while private consumption slowed to 1.9% from 3.3% in the previous quarter amid higher domestic energy prices, and government spending was weak because disbursement had already been accelerated earlier. Yuanta Securities expects consumption to recover clearly in the third quarter from the full-quarter impact of the Thai Chuay Thai Plus measures, and government spending to accelerate toward the end of the fiscal year. It maintains a positive view on construction contractors, power plants, industrial estates, retail, and food and beverage, citing stocks CK, STECON, GUNKUL, GULF, FORTH, SAMART, EPG, BJC, CPALL and CBG. The planning agency also raised its GDP forecast for this year to 2.0 to 2.5% from 1.5 to 2.5%, and lowered its inflation forecast to 1.5 to 2.0% from 2.0 to 3.0%, which helps ease pressure on monetary policy tightening.

Samart Corporation Public Company Limited, or SAMART, has set a 2026 profit target of about 700 million baht, up from 480 million baht achieved in 2025. In the first half of this year, the company already posted a profit of about 280 million baht and expects full-year revenue of about 13 billion baht. Mr. Wattachai Wilailak, Executive Vice President for Corporate Strategy, said the company is studying expansion into EV-related businesses to increase recurring revenue from the current average of about 6 billion baht per year, with clarity expected by September 2026. The group currently has a total backlog of 14.889 billion baht, comprising about 7.997 billion baht in the Digital ICT Solutions business under Samart Telcoms Public Company Limited, or SAMTEL, about 6.738 billion baht in the Utilities and Transportation group, and the remainder in other areas. It expects to recognize about 3 billion baht of revenue this year and to continue recognizing revenue over at least the next three years. The company plans to bid for new communications and power system projects worth more than 10 billion baht in total and aims to increase its backlog to about 20 billion baht by the end of this year. It is also moving forward with new growth engines in AI Government, Green Energy, Enterprise Business, and Future Technology such as humanoid robotics and automation, as well as the SAMART NEW GEN approach to develop new-generation leaders to support long-term business expansion.

SAMART expects the second half of 2026 to accelerate with the gradual signing of large-scale projects, especially from August to November. Key projects awaiting results include an AOT project through SAV worth 1.3 billion baht, a power transmission system for a data center worth 1.1 billion baht, an Interior Ministry project worth 1 billion baht, and other government projects worth 2 to 3 billion baht. The total value of projects awaiting bidding results exceeds 10 billion baht. If secured as targeted, this will push the backlog from 14 billion baht at the end of the first quarter of 2026 to the target of 20 billion baht by year-end. The company is also advancing its cyber security business through a SOC center in partnership with IBM, responding to surging demand after cyber attacks on major organizations. Currently, 65 to 70 percent of revenue comes from recurring income, and SAV is supported by Vietnamese tourism and Cambodia's visa-free policy.

Analysts at Yuanta Securities Thailand, or YUANTA, say the formation of five working groups under the Joint Public-Private Sector Consultative Committee, or Krung-Or, will boost money circulating in the economy by as much as 600 billion to 800 billion baht per year if the country's investment ratio can be lifted from the current 22 to 23 percent to 30 percent of gross domestic product as targeted. The plan is divided into three phases: a short-term phase of six months, a medium-term phase of two years, and a long-term phase of four years, covering strategies in investment, artificial intelligence and digital technology, the green economy, finance, and healthcare. Stocks expected to benefit directly include GULF, GUNKUL, KTB, STECON, CK, FORTH, SKY, PIS, DITTO, SAMART, and TASCO, especially power-plant operators and companies likely to win project work from the public sector. Analysts recommend closely monitoring progress in the first six months, because if the plan is executed as scheduled it will help restore confidence and support long-term earnings growth.