Interlink Telecom Public Company Limited

Interlink Telecom Public Company Limited, or ITEL, disclosed that the National Broadcasting and Telecommunications Commission, or NBTC, has announced the lowest bidders for the high-speed internet procurement project in remote areas, Phase 3, or USO3. ITEL, together with partners, secured a total of three contracts: two contracts jointly with Thaicom and one contract with TKC covering the southern region. The project value attributable to ITEL alone is about 1.7 billion baht, with clarity on contract signing expected in the fourth quarter of 2026. The total contract value of the entire USO3 project stands at 5.42 billion baht, covering five regions nationwide. Following this award, the company's work in hand, or backlog, rises from about 2.2 billion baht to 3.9 billion baht. The project execution period is roughly five years, and revenue is expected to be gradually recognized through 2031. As for the outlook for the second half of 2026, the company expects continued growth from the first half, in which it already recorded revenue of about 1.36 billion baht. For the full year 2026, the company maintains its total revenue target at approximately 3.6 billion baht, up from about 2.86 billion baht last year. On the analyst side, Krungsri Securities Public Company Limited recommends buying ITEL shares with a target price of 2.00 baht, expecting revenue recognition to begin in the fourth quarter of 2026 and to help support a return to stronger profit growth in 2027.

True Internet Corporation, under True Corporation, or TRUE, is one of the winners of the auction for the project to provide universal basic telecommunications services and social services, Phase 3, or USO 3, which the NBTC announced on 11 September 2026. TRUE won 2 of 5 groups: the northern group, worth 1.25 billion baht, together with Infraset, or INSET, and the central group, worth 762 million baht, together with Wire and Wireless. As a result, the two projects have a combined contract value of approximately 2.01 billion baht. For the remaining 3 regions, the winners include groups whose members are Thaicom, or THCOM, Interlink Telecom, or ITEL, and Turnkey Communication Services, or TKC. The proportion held by TRUE in each joint venture group has not yet been disclosed. The financial benefit figures estimated from the full contract value therefore represent the upper bound, and the revenue actually recognised by TRUE may be lower than the estimate in line with its participation proportion in the project. Payment terms are divided into 2 phases. In the first phase, network planning and installation, payment is received in 3 installments within the first year after signing, accounting for 47% of the contract value. The other phase, 53%, is gradually recognised over 5 years. Tisco Securities expects the contract signing to take place in late 2026, leading TRUE to begin recognising revenue from the first-phase work in 2027 of approximately 945 million baht, or only 0.5% of its total revenue estimate of 192 billion baht, while revenue from the operating phase will begin to be gradually recognised from 2028. Although the auction result is a positive factor, the impact on estimates remains limited because government work carries relatively low margins. Assuming a net margin of 5%, the additional net profit would account for only 0.2% of the net profit estimate of 27.5 billion baht. Tisco Securities maintains its buy recommendation on TRUE with a fair value based on discounted cash flow of 16 baht per share, based on a weighted average cost of capital of 8.3%, equivalent to a 2026 price-to-earnings ratio of 23 times, below the 5-year historical average of 27 times.

The National Broadcasting and Telecommunications Commission, or NBTC, has announced the winners of the USO 3 auction, a procurement of high-speed internet services under the project to provide universal and social basic telecommunications services in areas that lack or still have inadequate coverage, for public health, public benefit, and security purposes. The project has a total value of 5.42 billion baht, divided into 5 contracts. A subsidiary of True Corporation Public Company Limited, or TRUE, was among the winners and secured 2 contracts worth a combined 2.01 billion baht. These comprise the northern region contract, valued at 1.25 billion baht, won in partnership with Infraset Public Company Limited, or INSET, under the joint venture name TI, and the central region contract, valued at 761.50 million baht, won in partnership with Wire and Wireless Company Limited under the joint venture name TW. Meanwhile, Interlink Telecom Public Company Limited, or ITEL, and Thaicom Public Company Limited, or THCOM, joined forces under the joint venture name TCI to win 2 contracts worth 2.45 billion baht: the northeastern region contract, valued at 1.88 billion baht, and the eastern and western regions contract, valued at 564 million baht. ITEL, together with Turnkey Communication Services Public Company Limited, or TKC, under the joint venture name Interlink TKC, won the southern region contract, valued at 965.70 million baht. Krungsri Securities noted that initially no USO 3 project has been factored into its calculations. Revenue recognition from USO 3 would amount to 950 million baht; applying a net profit margin of 15% would boost profit in 2027 by 71 million baht, and by 14 million baht from 2028 onward, which is considered very small compared with TRUE's profit level of 31 billion baht in 2027.

Asia Plus Securities said the TCI consortium, a partnership between THCOM and Interlink Telecom, or ITEL, has won two contracts in the Phase 3 USO auction, with a combined value of 2.448 billion baht. This breaks down into a contract for the northeastern region worth 1.884 billion baht and a contract for the eastern and western regions worth 564 million baht. Asia Plus views the news as positive for THCOM because it will bring in certain revenue over the five-year life of the contracts and will increase revenue compared with the earlier Phase 1 and Phase 2 edge-network projects, under which THCOM earned only satellite transponder service fees from the auction winners since it did not bid itself. In Phase 3, however, THCOM will earn both equipment installation revenue and satellite transponder service fees. Equipment installation is expected to take about two to three months, so revenue from this project should begin to be recognised in early 2027. That said, results for the third and fourth quarters of 2026 still look weak and the company is expected to remain in the red on normal operations, as no new customers have come in while existing customers, especially broadcasting service providers, are likely to cut usage further. Given the latest auction results, in which the company won work worth more than expected, Asia Plus has raised its 2027 profit forecast for THCOM to 729 million baht from an earlier estimate of 381 million baht, and lifted its 2027 target price to 11.80 baht from 11.30 baht using a discounted cash flow method. It also upgraded its recommendation to Buy from Trading, believing the market has already priced in the negatives, including the likely weak operating performance in the second half of 2026, while the Phase 3 edge network is a positive factor that should help the company swing to a profit in 2027 and support the share price in the near term.

Thaicom, or THCOM, has won the auction for the Phase 3 border internet project, securing 2 of the 5 contracts on offer. A joint venture between THCOM and Interlink Telecom, or ITEL, was the winning bidder, with a combined value of approximately 2.45 billion baht out of the project's total value of about 5.4 billion baht. The awards comprise a contract for the northeastern region worth approximately 1.89 billion baht, and a contract covering the eastern and western regions combined worth approximately 564 million baht. The research division of Asia Plus Securities said the auction result is a positive factor, as it generates certain revenue throughout the 5-year contract term and exceeds the Phase 1 and Phase 2 projects, since Phase 3 includes both revenue from equipment installation and revenue from satellite channel services. Equipment installation is expected to take about 2 to 3 months before revenue recognition begins in early 2027. However, the earnings outlook for the third and fourth quarters of 2026 remains weak, and the company is still expected to post a loss from normal operations due to the higher-than-expected value of the work. The research division therefore raised its 2027 profit forecast from 381 million baht to 729 million baht, and lifted its 2027 target price from 11.30 baht to 11.80 baht, while upgrading its recommendation from Trading to Buy.

Several companies announced business progress among today's stocks to watch. Gulf Energy Development, or GULF, signed power purchase agreements, or PPAs, for four wind power projects with a combined generating capacity of 346.5 megawatts with the Electricity Generating Authority of Thailand, or EGAT, pushing the company's Thai wind energy portfolio past 1,058.5 megawatts. All 14 projects are expected to reach commercial operation, or COD, by 2030, which will generate annual profit of 2 billion baht, while the latest four projects are set to add roughly 500 million baht per year in profit. KCE Electronics, or KCE, drew speculative interest on the chance of winning printed circuit board, or PCB, work to supply Tesla's Optimus robots. Management acknowledged the matter is under way but no conclusion has been reached, while brokers see a successful deal potentially lifting its P/E to 40 times and have raised their target price to 70 baht. Meanwhile, the National Broadcasting and Telecommunications Commission, or NBTC, announced the winners of the USO 3 auction with a combined value of 5,423.70 million baht, with THCOM and ITEL sweeping the two large areas worth a combined more than 2,448 million baht, while TRUE and INSET won the northern work worth 1,248.50 million baht, and ITEL and TKC took the southern work worth 965.70 million baht. Sky ICT, or SKY, was pleased that AOTGA awarded it two large projects spanning 25 years with a combined value of 67,300 million baht. The apron and ground support equipment service projects are expected to begin operating in the middle of next year, supporting earnings in 2027 with significant profit growth.

ITEL views the government's data center reorganization as positive for the industry and believes that expansion will continue, highlighting its strengths in domestic and international network connectivity. It is currently in negotiations with several Hyper Scaler clients and expects to start recognizing revenue from these services in the first batch in the third quarter. It is also hoping to sign a contract with NBTC worth around 1,700 million baht to push total revenue this year to reach the target of 3,600 million baht. Currently, it has signed contracts worth approximately 2,100 million baht, and additional work from Hyper Scalers worth 600-700 million baht, which will start recognizing some revenue in September and most in December.

Interlink Telecom Public Company Limited, or ITEL, reported second-quarter 2026 results with total revenue of 711 million baht, up 7 percent from the same period last year, and net profit of about 20 million baht. EBITDA margin rose from 19.9 percent to 26.7 percent, reflecting better cost management and improved revenue quality. The revenue increase was driven by the network installation service business, which recognised more revenue and signed new contracts, as well as Interlink Healthtech Company Limited, or IHT, which began gradually recognising revenue from the opening of CT Scan centres. Meanwhile, the data service business was still affected by the end of the first and second phases of the USO project, which are in the process of work delivery and contract renegotiation, causing some recurring revenue to temporarily disappear. For the first six months of 2026, the company had total revenue of about 1.418 billion baht and total net profit of about 52 million baht, comprising about 1.063 billion baht from ITEL, about 280 million baht from Blue Solution, about 55 million baht from the Interlink Healthtech business, and about 20 million baht from other income. At the end of the second quarter of 2026, the company had total backlog of about 2.74 billion baht, consisting of 1.638 billion baht in data network services, up from 1.254 billion baht, and about 787 million baht in network installation work. More than 70 percent of the backlog is recurring revenue. In the hyperscaler data centre customer segment, the company has new contracts worth about 699 million baht, comprising about 338 million baht in one-time payments and about 361 million baht in monthly recurring revenue. These figures are based on initial usage levels and do not yet include opportunities to expand the number of circuits or increase service areas in the future. ITEL will begin providing concrete services to hyperscaler customers from August 2026 onwards, after several data centres are completed and begin commercial operations. The company expects continuous growth from the remainder of 2026 through the end of 2027 because these are long-term contracts and some customers pay for services in advance, which will help improve the company's cash flow towards the end of the year. However, the revenue recognition pattern for these contracts is still being discussed with the auditor as to whether revenue should be recognised as a lump sum based on payment receipt or gradually over the contract term, so the revenue to be recognised in the third quarter of 2026 cannot yet be clearly specified. Dr Nattanai said that investment in data centres and AI infrastructure in Thailand will increase demand for data connectivity services, because data centres need to connect between centres, connect with users, and link internationally. ITEL has a fibre optic network covering the whole country via railway routes, roads, and underground networks, and can provide both primary and backup routes to customers. In the EEC area, network utilisation is currently more than 50 percent and there is still capacity to support growth. The customer base covers factories and private organisations, mobile operators, internet service providers, and hyperscaler groups, many of which will begin operating data centres within this year. In addition, the company is expanding its fibre network to connect with Malaysia through the Sungai Kolok checkpoint, adding to the existing channels at the Sadao and Padang Besar checkpoints. The network along the railway, for which the company has a 30-year management right, is infrastructure that creates a competitive advantage, and the main routes nationwide have been almost fully invested in. For the third phase of the USO project, the company has submitted a proposal and it is under consideration by the relevant agencies. ITEL confirms its readiness to resume operations at various centres immediately if the project is approved and supported by a contract, because it has prior experience operating the first and second phases of the USO project. In the medical business, CT Scan services are now available in three hospitals, and the company is studying usage patterns in each area. The number of users is expected to increase as awareness grows among local communities. The company also plans to list Blue Solution on the stock exchange and is considering appropriate structures and options. Blue Solution has returned to normal operations and profitability, and aims to enhance its expertise in ERP systems, especially cloud-based systems. For 2026, ITEL maintains its total revenue target of about 3.6 billion baht. In the second half of the year, the company will accelerate work delivery, control costs, and improve utilisation of existing infrastructure, while increasing the proportion of recurring revenue from the connectivity business, data centre customers, and hyperscalers, which is expected to be a key driver of performance going forward.

Interlink Telecom Public Company Limited, or ITEL, reported second-quarter 2025 results with total revenue of 711 million baht, up 7% from the same period last year, and net profit of 20 million baht. For the first six months, total revenue was 1.418 billion baht and net profit was 52 million baht. The company is gradually recognizing revenue from large data center customers and network installation projects for several government and private sector clients. Chief Executive Officer Nattanai Anantaramporn said the business outlook for the second half of the year has a chance to improve from the first half, driven by gradual revenue recognition from the backlog, hyperscaler customers beginning commercial operations, and opportunities for new projects from both government and private sectors. The company targets total revenue for 2026 at approximately 3.6 billion baht and estimates that by the end of 2027, revenue from the Data Center and Hyperscaler segment has the potential to rise to around 200 to 300 million baht per year. A significant portion of this revenue will be recurring from data connectivity services, as many data centers are transitioning from construction to commercial service, shifting connectivity demand from one-time installation revenue to long-term recurring services. ITEL has a nationwide fiber optic network with diverse routes, supporting both domestic and international connectivity for enterprise customers, cloud providers, data centers, and hyperscalers.

Analysts expect that the clarity of the new Data Center business regulations, which the government is preparing to approve, will help attract investment and benefit stocks in technology infrastructure, power, construction contracting, telecommunications, and industrial estates. The Board of Investment has already approved Data Center and Cloud Service projects worth over 958 billion baht. Power plant and utility groups such as WHAUP are expected to benefit from sales of industrial water and electrical systems, while GUNKUL, GULF, BGRIM, and STECON will gain from engineering systems, clean energy, and Data Center building construction. In the electronics sector, DELTA is highlighted as a standout stock due to demand for power supply systems and cooling technology for AI servers. HANA and KCE are supported by orders for high-end printed circuit boards, and WHA benefits from selling land in industrial estates to foreign investors. Additionally, BCPG is gaining from natural gas power plants in the United States that are seeing electricity demand from Data Centers, while INSET, ITEL, and SYMC have opportunities to undertake Data Center system installation, co-location services, and fiber optic network projects.

ITEL sees the growth of AI as a major opportunity for the telecom industry, driven by a sharp increase in data traffic. Dr. Nattanai Anantaramporn, Chief Executive Officer, said at the BLS x ITEL Virtual Conference that every time AI is used, commands are sent to data centres for processing. The more AI is used, the more data traffic and demand for communication networks expand. AI growth is also pushing global cloud providers and data centre operators to accelerate investment in Thailand, especially in the Eastern Economic Corridor, where there are 22 data centre projects requesting grid connections, totalling 5,461 megawatts of power, reflecting a sustained large-scale investment trend. Dr. Nattanai believes that data centre investment requires low-latency, high-stability communication networks from the planning stage, because without a ready network, services cannot be launched at full potential. ITEL is well prepared with a nationwide fibre optic network and telecom business experience. In 2026, two to three hyperscaler customer projects that ITEL has been co-developing over the past two to three years will gradually go live, leading to service revenue recognition, along with additional opportunities from data centre projects and other operators currently in collaboration.