Krungsri Securities has a positive view on BTS Group Holdings Public Company Limited (SET: BTS) after its subsidiary, ROCTEC, along with other partners, acquired a 1.5 billion baht project from the State Railway of Thailand (SRT). This sent the share price of BTS to rise by 7% on Tuesday.
Mr. Weerit Amrapal, Governor of SRT, revealed yesterday that the company signed an employment contract for communication network installation, worth THB 1.487 billion, with a joint venture RUTS, comprised of SKY ICT Public Company Limited (SET: SKY), Roctec Global Public Company Limited (SET: ROCTEC), and United Telecom Sales and Services Company Limited (UTEL).
Through the holding of 60% in ROCTEC, KSS’ sensitivity analysis shows an incremental earnings contribution from this project of 100-150 million baht for ROCTEC, which translates to 60-90 million baht a year for BTS. This accounts for 17%-25% for BTS’s earnings in FY26F.
BTS recorded a net loss of over 5.2 billion baht in FY2024, KSS expected the firm to record a 1.1 billion baht in normalized loss in FY2025 before turning to profit in FY2026.
KSS recommended ‘BUY’ on BTS at a target price of THB6.49 per share.
