THCOM shares fell 3.85% to 10.00 baht following news that the Cabinet approved the Ministry of Digital Economy and Society to pursue legal action seeking compensation of approximately 1.25 billion baht for the incomplete delivery of six items of satellite assets TC-4 and TC-6. Thaicom and Gulf Development issued a joint statement affirming full compliance with the concession contract and readiness to contest the case through arbitration. Krungsri Securities views this as only a short-term negative factor, as legal proceedings would take at least 6-9 years, and the company has not yet set aside provisions for this case. The brokerage maintains a Buy recommendation on THCOM with a target price of 14.7 baht, expecting the USO #3 project to be a catalyst for earnings recovery.
Thaicom Public Company LimitedCabinet approved lawsuit seeking 1.25 billion baht damages from Thaicom for incomplete satellite delivery, causing shares to fall.
