Sky ICT Public Company Limited

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.

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.

Sky ICT Public Company Limited, or SKY, is set to recognise its share of profits from AOT Ground Aviation Services Company Limited, or AOTGA, after the Cabinet approved the selection of the private partner and the key terms of joint investment contracts for two major projects of Airports of Thailand Public Company Limited, or AOT. The projects are the apron and ground handling equipment services project and the cargo terminal services project. AOTGA is the private company selected to jointly invest in both projects under a 25-year concession model, with a combined value of more than 67.3 billion baht. SKY holds a net stake of approximately 24% in AOTGA through a subsidiary. Sittidech Mailap, Chief Executive Officer of SKY, said the company is currently awaiting AOT's call to sign the contracts so that operations can officially begin. The apron and ground handling equipment services project is expected to start operations around the middle of next year, while the cargo terminal services project is scheduled to begin actual operations within two years of the start of ground services. Once the projects begin operations, AOTGA will immediately start recognising revenue, and SKY, as a shareholder, will recognise returns in the form of profit sharing in proportion to its shareholding. This will cause SKY's earnings from next year onward to grow significantly. Meanwhile, Yuan Ta Securities (Thailand) Company Limited said in an analysis that AOTGA is the third player in a growing market and is expected to hold a long-term market share of 15-20%. Under that assumption, AOTGA is expected to earn around 700-1,000 million baht per year. SKY, meanwhile, targets revenue growth of around 20% year on year in 2026 and expects growth to continue in 2027. It estimates normal profit of 923 million baht in 2026, up 31% year on year, rising to 1,150 million baht in 2027, up 25% year on year, representing average growth of around 28%. It also gives a preliminary appropriate price at the end of 2026 of 25.75 baht per share.

Bualuang Securities stated that the Cabinet approved AOT to sign a PPP contract with AOTGA to become the third service provider at Suvarnabhumi Airport, covering Cargo Service with a project value of about 38 billion baht and Ground/Passenger Handling of about 29 billion baht, totaling approximately 67.3 billion baht, with a 25-year concession. If AOTGA generates a profit of about 800 million baht at full ramp-up and AOT recognizes a share of about 400 million baht, this would represent approximately 5% earnings upside. Meanwhile, SKY expects profit sharing from AOTGA of about 200 million baht per year, or roughly 20–25% of its current profit base. The Ground OCC platform developed by SKY itself will be an upside in the next phase if AOTGA can use it as a reference case to expand abroad.

Sky ICT Public Company Limited, or SKY, reported second quarter 2026 results with total revenue of 2.653 billion baht and net profit of 223 million baht. This brought first half 2026 total revenue to 5.442 billion baht, up 8 percent, and net profit to 523 million baht, up 29 percent compared with the same period last year. Chief Executive Officer Sittidej Mayalarp said that despite Middle East tensions, high energy costs and fewer passengers during the low season, SKY group gross profit rose by 162 million baht, or 19 percent, from a year earlier. For the second half, the aviation tech business is expected to grow during the high travel season, and IATA forecasts Asia Pacific passenger numbers to increase by 5 percent. Meanwhile, backlog at the end of the second quarter of 2026 stood at 27.838 billion baht, which will be recognised as revenue continuously over seven years.

Yuanta Securities stated that Sky ICT Public Company Limited, or SKY, posted second-quarter 2026 normalised profit growth of 20% from the same period last year, with net profit at 202 million baht and normalised profit at 192 million baht, down 29% from the previous quarter but up 20% from a year earlier, supported by a better gross margin. Core revenue was 2.646 billion baht, down 5% from the previous quarter but up 1% from a year earlier. System Integrations revenue was 712 million baht, up 194% from the previous quarter but down 20% from a year earlier, while Services revenue was 1.786 billion baht, down 30% from the previous quarter but up 3% from a year earlier, as passenger volumes declined after Middle East conflicts affected travel, especially among customers from the Middle East and Europe, and some airlines reduced flight frequencies. Backlog at the end of the second quarter of 2026 stood at 27.838 billion baht, up 10% from the previous quarter and 19% from a year earlier, growing for a third consecutive quarter and reflecting opportunities for revenue growth ahead. Yuanta Securities said first-half 2026 normalised profit accounted for 50% of its full-year 2026 profit estimate of 923 million baht, up 31% from a year earlier, and it expects second-half 2026 profit momentum to be stronger than the first half, driven by a recovery in tourism-related revenue and gradual recognition of revenue from a strong government project backlog. It values SKY at 25.75 baht per share at end-2026, based on a price-to-earnings ratio of 20 times.

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.

Sky ICT Public Company Limited, or SKY, has announced it is moving forward with its aviation technology business to drive long-term growth, with plans to develop an airport management platform and AI humanoid robots targeting the global market. Chief Executive Officer Sittidej Mayalarp revealed that the aviation industry is on an upswing, with global passenger numbers expected to grow by around 20 to 25 percent in 2026, while passenger numbers in Thailand are projected to grow by an average of 5 to 7 percent per year and will accelerate in the fourth quarter of 2026, which is the tourist season. Meanwhile, Airports of Thailand has plans to expand Suvarnabhumi Airport from a capacity of 60 million passengers per year to 75 million in the next three years, and to 140 million by 2034, which will be a factor driving increased demand for airport management technology. SKY is also developing the OCC Platform, a comprehensive ground handling management platform, with plans to launch it in international markets in 2030, while also pushing into the humanoid robot business through a joint venture with AGIBOT and TKC, in which SKY holds a 55 percent stake, to develop Thai-language AI and a large language model, aiming to deploy robots in actual airport operations by the end of this year. Currently, SKY provides technology systems at 13 airports nationwide, and as of the end of the first quarter of 2026, it had a backlog valued at 25.287 billion baht, with over 90 percent being long-term projects in the Technology as a Service segment.