THCOM wins 2.45bn baht USO3 contracts, but faces 1.26bn baht lawsuit
Cabinet lawsuit over satellite concession The Cabinet authorized the Digital Economy Ministry to sue THCOM for 1.259 billion baht (1.15 baht per share, 11% of market value) over alleged breach of the satellite concession. This is a real legal overhang that could hit cash and future government satellite business, though brokers say the market reaction may be overdone.
This is a major new legal risk that directly threatens THCOM's finances and government contracts.
Wins 2 of 5 USO3 border internet contracts worth 2.45bn baht THCOM's joint venture with Interlink Telecom won two USO3 contracts (Northeast and East-West) worth 2.45 billion baht. This provides certain revenue over five years, with installation starting early 2027. It helps offset losses during the satellite transition, though it won't fully turn the company profitable yet.
This is a concrete new contract win that boosts future revenue and improves sentiment.
Broker upgrades on USO3 win Asia Plus raised THCOM's 2027 profit forecast from 381 million to 729 million baht and upgraded the stock to Buy with a target price of 11.80 baht. Kasikorn maintained Hold with a 12.47 baht target, noting the win beat expectations but isn't enough to end operating losses.
Analyst upgrades directly influence investor perception and can drive buying interest.
THCOM remains a weak point in the group In the telecom group's Q2 results, THCOM posted a core loss of 79 million baht while TRUE and ADVANC reported strong profit growth. This highlights THCOM's ongoing struggles, especially with satellite transition delays, and keeps it a drag on the group's overall performance.
This underscores THCOM's weak fundamentals relative to peers, which weighs on its valuation.