Samart Aviation Solutions Public Company Limited

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.

Samart Group has announced its business push for the second half of the year, preparing to bid on projects worth more than 10 billion baht in total, with the aim of lifting its backlog to 20 billion baht by year-end. It is also promoting future businesses such as Private AI, Cyber Security, Data Center and EV Charger as new growth engines. Mr. Wattachai Wilailak, Executive Vice President of Corporate at Samart Corporation, said second-quarter results for 2026 showed revenue of 2.838 billion baht and net profit of 141 million baht, allowing the company to deliver net profit for eight consecutive quarters. For the first six months, total revenue was about 5.6 billion baht, up 7.2 percent from a year earlier, while net profit was 280 million baht, up nearly 30 percent from 215 million baht a year earlier. The company is targeting revenue of 13 billion baht this year and aims to double both revenue and profit next year. In the second half, it expects to benefit from the formation of the government and accelerated budget disbursement, which should revive public-sector work, especially auctions from September to December worth about 7.5 billion baht for Samart, with projects including subsidiaries exceeding 10 billion baht. The aviation business SAV has clearly recovered since July, with overflight revenue accounting for about 70 percent of aviation revenue, and the Vietnam market representing nearly 40 percent of all overflight flights, growing about 24 percent from a year earlier. Meanwhile, SDC, which has a contract with the Ministry of Interior and is the source of more than 80 percent of SDC's revenue, will see that contract end in November, with clarity on renewal or a new auction expected in December. The company is also preparing to partner with a Chinese ally to install EV chargers, with an official cooperation announcement planned for early next month, and is moving to expand its customer base to the Ministry of Public Health, as well as taking on construction of electrical substations for data center projects through the Provincial Electricity Authority.

Samart Aviation Solutions Public Company Limited, or SAV, reported a net profit of 122 million baht for the second quarter of 2026, with a normalised profit of 124 million baht, down 19 percent from the previous quarter and 12 percent from a year earlier, roughly in line with market expectations. Total revenue came in at 451 million baht, down 8 percent quarter-on-quarter and 5 percent year-on-year, weighed by the Middle East conflict and a 2 percent appreciation of the baht against the prior year. Total flights numbered 29,700, a decline of 12 percent from the previous quarter and 2 percent from a year ago, with domestic flights down 7 percent and international flights down 17 percent, while overflight traffic was stable. Gross margin stood at 52.9 percent, up from a year earlier, as the share of overflight traffic rose to 74.7 percent. The company declared a first-half dividend of 0.40 baht per share, representing a yield of 3.4 percent, with the XD date set for 20 August 2026. Analysts at Yuanta Securities expect profit to recover in the third quarter of 2026, helped by an easing of Middle East tensions and a 28 percent quarter-on-quarter drop in jet fuel prices. They maintain their 2026 profit forecast at 608 million baht and keep a buy rating with a target price of 16.00 baht.

Dao Securities stated that SAV reported a net profit for the second quarter of 2026 of 122 million baht, down 6 percent from the prior year and 15 percent from the previous quarter, roughly in line with market expectations. Total flight volume slowed to 30,000 flights, down 2 percent from the prior year and 12 percent from the previous quarter, as several airlines worldwide cancelled some flights due to the impact of higher fuel prices. Service revenue was 451 million baht, down 5 percent from the prior year and 8 percent from the previous quarter, in line with flight volume trends. Meanwhile, cost control remained effective, with a gross margin of 52.9 percent, compared with 51.4 percent in the second quarter of 2025 and 52.8 percent in the first quarter of 2026. The analyst maintains the 2026 profit forecast at 547 million baht, flat from the prior year, with first-half profit of 265 million baht, down 2 percent from the prior year, accounting for 48 percent of the full-year estimate. Second-half profit is expected to return to growth from the prior year and the first half, driven by a recovery in flights from seasonal factors and easing fuel prices. Total flight volume in July 2026 returned to growth of 8 percent from the prior year, the first growth in four months. The recommendation remains buy with a target price of 14.50 baht, based on discounted cash flow, with the assessment that second-quarter profit marked the bottom and will accelerate in the third and fourth quarters. Additional support comes from Airports of Thailand's auction and plans to bid for work from Aeronautical Radio of Thailand within 2026, which will enhance sustained profit growth opportunities. A first-half dividend of 0.40 baht per share was announced, representing a dividend yield of 3.4 percent.

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.