Kasikorn Securities (KS) has a positive view on the signing between Thaicom Public Company Limited (SET: THCOM) and Hughes Communications India Private Limited for satellite capacity over India on Thaicom’s satellite fleet, expecting to generate 100-150 million baht in revenue for THCOM.
KS stated that it has a positive outlook on THCOM’s development based on its calculations suggesting that the leasing of TC8, totaling 12 units, could generate annual revenue of approximately 100-150 million baht for the company, primarily contributing to profits due to THCOM’s high fixed cost structure.
This agreement is just one of four agreements that THCOM must achieve in 2024-25 to meet KS growth projection. The other agreements include 1) NBTC’s USO project, 2) India’s USO project, and 3) the sale of the remaining 50% production capacity of TC10.
KS maintained an Outperform recommendation for THCOM, with a target price of 17.26 baht. In the near term, the support level of THCOM is THB11.00 per share, in accordance with the voluntarily tender offer from Gulf Energy Development Public Company Limited (SET: GULF).
The company’s stock price rose by 10.3% from 11.6 baht on August 16 to 12.9 baht today. KS recommended a short-term strategy for investors to take profit after the deal completes and to accumulate when there is no positive driver.
On August 28, 2024, Thaicom Public Company Limited (SET: THCOM), a leading Asian satellite and space tech company, announced that its subsidiary IPSTAR (India) Private Limited (IPSTAR) has signed an agreement for satellite capacity with Hughes Communications India Private Limited (HCI), a leading provider of broadband satellite and managed network services, for satellite capacity over India on Thaicom’s satellite fleet.
Under the agreement, IPSTAR India will provide satellite capacity services to Hughes in India via Thaicom’s satellite network. This will enable HCI to enhance its satellite broadband, mobile backhaul, maritime and satellite IoT services to meet the growing and varied demand for satellite services in India.
This strategic partnership represents a significant milestone in the development of satellite communications, boosting India-focused capacity for satellite broadband and related services. Thaicom remains committed to serving the satellite broadband demand for the Indian as the need arises, with additional capacity from its current and upcoming next-generation satellite fleet. It is now in the process of obtaining regulatory approval under the new space policy from the Indian government.
