ITEL wins big USO 3 contracts, but near-term profit still weak
USO 3 contract wins ITEL, through joint ventures, won three USO 3 regions worth about 3.41 billion baht. This locks in long-term revenue, but the work is low-margin and revenue starts mostly in 2027, so it barely helps near-term profit.
This is the main new event driving the stock and explains the recent price jump.
Hyperscaler revenue expected in Q3 ITEL expects to start booking revenue from hyperscaler clients in Q3, with 600-700 million baht more work coming. This supports the full-year revenue target of 3.6 billion baht and shows new demand beyond government projects.
It is a new demand source that could lift revenue and diversify away from low-margin government work.
Near-term earnings still weak Despite the contract wins, analysts say ITEL will likely post a loss in Q3 and Q4 2026 because the new work is low-margin and revenue recognition is delayed. The profit boost is pushed to 2027.
It is the main counterweight: the good news does not fix current losses, so the stock may stay volatile.
Analyst upgrade on 2027 outlook Asia Plus Securities raised its 2027 profit forecast for ITEL from 381 million to 729 million baht and lifted its target price to 11.80 baht, citing certainty of five-year revenue from the new contracts.
It shows professional investors see the contract wins as a real long-term value driver, not just a one-day pop.