Summary · why it matters
Yuanta Securities stated that Forth Corporation Public Company Limited, or FORTH, posted core profit in the second quarter of 2026 that grew 92% from the same period last year to 234 million baht, up 39% from the previous quarter, but 21% below Yuanta's estimate because Enterprise Solution revenue came in lower than expected. Although the company has received new work, revenue recognition for some projects remains delayed. Meanwhile, the EMS business showed a notable revenue recovery. Total revenue was 2.7 billion baht, up 8% from the previous quarter and 3% from a year earlier. This comprised EMS revenue of 835 million baht, up 51% from a year earlier, Enterprise Solution revenue of 929 million baht, down 14%, and Smart Service revenue of 973 million baht, down 5%. Gross margin was 25.8%, up 271 basis points from a year earlier. The EMS business posted a gross margin of 13.9%, down from 22.6% in the previous quarter and 15.2% in the second quarter of last year. Enterprise Solution posted a gross margin of 32.0%, up from 19.5% and 18.1% respectively. Smart Service posted a gross margin of 30.0%, down from 32.8% and 31.7% respectively. SG&A expenses were 366 million baht, down 8% from the previous quarter and 4% from a year earlier, reflecting good cost control. The tax rate was 19.4%, which is a normal level. Backlog for the SI business alone at the end of the second quarter of 2026 was 5.2 billion baht, significantly above the normal average level of around 2 to 3 billion baht, reflecting opportunities for revenue growth in the next period. FORTH sold a 40% stake in Maew Som Estate Company Limited to FSMART. As a result, after the transaction FORTH will hold a 9% stake. FORTH also invested 30% in AC Aviation Company Limited with an investment of 60 million baht to expand opportunities and build on the group's aircraft maintenance center business. The company also announced a dividend for first-half 2026 results of 0.15 baht per share, representing a dividend yield of about 0.9%, with the stock trading ex-dividend on 28 August 2026. Yuanta Securities maintained its end-2026 target price of 21.30 baht per share, based on a price-to-earnings ratio of 21 times, and kept its buy recommendation. It views the strong core profit growth in the second quarter of 2026, together with the strong SI business backlog and the recovery in EMS revenue, as positive factors that are already beginning to show in operating results, and it expects the profit trend to remain strong going forward. The pullback in the share price therefore presents a good opportunity to gradually accumulate the stock.
Forth Corporation Public Company Limited
Forth Smart Service Public Company Limited