Forth Corporation Public Company Limited

The Office of the National Economic and Social Development Council reported that gross domestic product in the second quarter of 2026 expanded 1.9% from a year earlier, slowing from 2.8% in the first quarter but above the market forecast of 1.7%. The main support came from private investment, which grew strongly in line with investment promotion applications, while private consumption slowed to 1.9% from 3.3% in the previous quarter amid higher domestic energy prices, and government spending was weak because disbursement had already been accelerated earlier. Yuanta Securities expects consumption to recover clearly in the third quarter from the full-quarter impact of the Thai Chuay Thai Plus measures, and government spending to accelerate toward the end of the fiscal year. It maintains a positive view on construction contractors, power plants, industrial estates, retail, and food and beverage, citing stocks CK, STECON, GUNKUL, GULF, FORTH, SAMART, EPG, BJC, CPALL and CBG. The planning agency also raised its GDP forecast for this year to 2.0 to 2.5% from 1.5 to 2.5%, and lowered its inflation forecast to 1.5 to 2.0% from 2.0 to 3.0%, which helps ease pressure on monetary policy tightening.

Yuanta Securities stated that Forth Corporation Public Company Limited, or FORTH, posted core profit in the second quarter of 2026 that grew 92% from the same period last year to 234 million baht, up 39% from the previous quarter, but 21% below Yuanta's estimate because Enterprise Solution revenue came in lower than expected. Although the company has received new work, revenue recognition for some projects remains delayed. Meanwhile, the EMS business showed a notable revenue recovery. Total revenue was 2.7 billion baht, up 8% from the previous quarter and 3% from a year earlier. This comprised EMS revenue of 835 million baht, up 51% from a year earlier, Enterprise Solution revenue of 929 million baht, down 14%, and Smart Service revenue of 973 million baht, down 5%. Gross margin was 25.8%, up 271 basis points from a year earlier. The EMS business posted a gross margin of 13.9%, down from 22.6% in the previous quarter and 15.2% in the second quarter of last year. Enterprise Solution posted a gross margin of 32.0%, up from 19.5% and 18.1% respectively. Smart Service posted a gross margin of 30.0%, down from 32.8% and 31.7% respectively. SG&A expenses were 366 million baht, down 8% from the previous quarter and 4% from a year earlier, reflecting good cost control. The tax rate was 19.4%, which is a normal level. Backlog for the SI business alone at the end of the second quarter of 2026 was 5.2 billion baht, significantly above the normal average level of around 2 to 3 billion baht, reflecting opportunities for revenue growth in the next period. FORTH sold a 40% stake in Maew Som Estate Company Limited to FSMART. As a result, after the transaction FORTH will hold a 9% stake. FORTH also invested 30% in AC Aviation Company Limited with an investment of 60 million baht to expand opportunities and build on the group's aircraft maintenance center business. The company also announced a dividend for first-half 2026 results of 0.15 baht per share, representing a dividend yield of about 0.9%, with the stock trading ex-dividend on 28 August 2026. Yuanta Securities maintained its end-2026 target price of 21.30 baht per share, based on a price-to-earnings ratio of 21 times, and kept its buy recommendation. It views the strong core profit growth in the second quarter of 2026, together with the strong SI business backlog and the recovery in EMS revenue, as positive factors that are already beginning to show in operating results, and it expects the profit trend to remain strong going forward. The pullback in the share price therefore presents a good opportunity to gradually accumulate the stock.

Forth Corporation Public Company Limited, or FORTH, reported second-quarter net profit for 2026 of 233.96 million baht, up 91.54% from 122.15 million baht in the same period last year, supported by higher gross profit. Total revenue came in at 2.808 billion baht, up 3% from 2.715 billion baht in the second quarter of 2025. The electronics business, or EMS, posted revenue of 835 million baht, up 51% from 552 million baht a year earlier, driven by continued growth in orders from both existing and new customers in the contract manufacturing and assembly of electronic circuit boards. For the first six months of 2026, the company reported net profit of 401.80 million baht, up 119.75% from 182.85 million baht in the same period last year. The board approved an interim dividend of 0.15 baht per share, with the ex-dividend date, or XD, set for 28 August 2026 and payment on 11 September 2026.

Analysts recommend watching CPALL and FORTH shares after both companies reported fourth-quarter results that beat expectations. CPALL posted standout net profit growth driven by a recovery in same-store sales and higher rental income, while FORTH was supported by government projects and a continued expansion in its renewable energy business. Several brokers have upgraded their recommendations and target prices for both stocks, reflecting a positive outlook on earnings momentum next year.

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.

FORTH expects continued growth in the second half, with its EMS business turning profitable on new customer orders from Australia. Meanwhile, the Enterprise Solutions business is awaiting the signing of a police radio communications project for the Royal Thai Police worth 800 to 900 million baht, and an electronic bracelet project for the Department of Corrections. If signed within this year, these will drive growth beyond targets, alongside recognition of over 800 million baht in smart meter revenue by year-end. On the Tao Bin vending machine front, the company is pushing into high-GDP markets such as the United States and Europe, targeting nearly 9,000 machines in Thailand and 1,500 overseas by year-end, using a revenue-sharing model with local partners. For 2026, the company targets 5% revenue growth from 11.6 billion baht and net profit growth of 5 to 10%, with a chance to reach 1 billion baht, supported by the EMS turnaround and improved Tao Bin performance, while adjusting strategy to take on projects less affected by high IT costs.

Thunhoon reports that FORTH and GLOBAL shares are once again attracting investor interest after a significant share price recovery. FORTH reported fourth-quarter 2024 results swinging back to a net profit of 102 million baht, compared with a loss in the same period last year. Meanwhile, GLOBAL posted a net profit of 1.2 billion baht, up 15 percent from the previous year. Brokers view the business outlook for both companies as still enjoying good growth, supported by recovering domestic demand.

Kingsford Securities places afternoon support for the SET index at 1,625 to 1,630 points and resistance at 1,635 to 1,640 points, after the morning session closed down 11.91 points at 1,632.48 points with a trading value of 53 billion baht, bucking the mostly higher Asian markets. The index was pressured by selling in DELTA, which fell 5.8 percent after reporting second-quarter 2026 profit of 6.0 billion baht, down 33 percent from the previous quarter and 30 percent below expectations, due to a lower gross margin from chip shortages and higher loyalty fees. Meanwhile, funds rotated into tourism, banking, and retail sectors. The research team recommends FORTH on a technical basis with support at 16.70 baht, resistance at 18.20 to 18.90 baht, and a stop-loss at 16.30 baht, along with GLOBAL with support at 7.05 baht, resistance at 7.85 baht, and a stop-loss at 6.85 baht.

Yuanta Securities has initiated coverage on Forth Corporation Public Company Limited, or FORTH, with a buy recommendation and a fair value of 21.30 baht per share. The firm forecasts normalized profit for 2026 at 949 million baht, up 15% from the previous year, rising to 1.107 billion baht or 17% growth in 2027. This is supported by a leap in the Enterprise Solution business and a gradual recovery in the EMS business in line with the global semiconductor cycle, while the FSMART business is expected to grow steadily. The research team notes that during past profit upcycles, FORTH shares traded at a price-to-earnings ratio of 30 to 40 times, and expects the current earnings recovery to be stronger than the previous one. If results meet expectations, the stock could be re-rated to trade at a price-to-earnings ratio of 20 to 25 times, which is still below past peak levels.