Forth Smart Service Public Company Limited

Farm income in July accelerated 10% from a year earlier, marking a fifth straight month of growth and the strongest pace in 20 months, helped by a 12% rise in agricultural prices while output fell 2%. An analysis from Yuanta Securities said products with improving prices included cassava, palm oil and chicken eggs, while hog prices declined. Durian and hog output increased, while cassava, rambutan, mangosteen, oil palm and chicken egg production decreased. Farm income is expected to keep accelerating from the third quarter through the fourth quarter of 2026, supported by continued growth in key product revenue, output affected by drought and lower global supply, a low base last year, and a recovery cycle that typically lasts about 12 months. This cycle has already risen for five months, so there is a chance of at least another five to six months of gains. The agricultural economy accounts for 10% of GDP and involves about 30% of the population, so it is expected to significantly support consumption in the second half of 2026. It should also improve asset quality for financial institutions and ease household debt pressure, which is positive for finance stocks, while stimulating investment in machinery, tractors, water pumps, fertilizer, seeds, solar energy and farmland improvement. Recommended stocks include GFPT, TFG, STA, GLOBAL, DOHOME, MTC, SAWAD, FSMART, DRT, DCC and SAT. The analysis also suggests monitoring APURE, or Agripure Holdings Public Company Limited, whose second-quarter 2025 results recovered with net profit of 56 million baht, accelerating from 12 million baht in the first quarter of 2026 and swinging from a loss of 34 million baht in the second quarter of 2025. This was driven by export sales to Europe surging eight to ten times after Europe restricted Chinese goods seen as dumped, sending large order volumes to APURE. The company has already planned for drought-related costs, and customers bear all shipping costs, so third-quarter 2026 profit is expected to accelerate both quarter-on-quarter and year-on-year, with the best chance in ten quarters. Fourth-quarter profit is expected to be stable quarter-on-quarter and grow strongly year-on-year. If this materializes, full-year profit would be around 250 million baht, up from only 27 million baht last year, implying earnings per share of 0.26 baht. The current share price trades at a price-to-earnings ratio of only 8 times, with an expected dividend yield of 8 to 9 percent per year. Technically, the price has just moved back above the 200-day moving average with positive signals, with resistance at 2.60 baht and 2.80 baht.

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.

The board of FSMART approved an interim dividend payment of 0.18 baht per share after net profit for the first six months of 2026 came in at 268.9 million baht. The stock will trade excluding dividend on 27 August 2026, with payment on 10 September 2026. Total revenue from core businesses in the first half was 1.2601 billion baht. Transaction value through Boonterm kiosks totalled 17.658 billion baht. The lending business generated revenue of 168.5 million baht, with outstanding loans of 1.609 billion baht. The electric vehicle charging business, GINKA Charge Point, had 650 charging points, and there were 7,850 Turtle Flying kiosks. For the second quarter of 2026, the company posted total revenue of 628 million baht and net profit of 133.4 million baht. The company targets full-year 2026 revenue growth of 8 to 10 percent and plans to expand its loan portfolio by about 40 percent to 2.2 billion baht. It also aims to increase GINKA charging points to 1,000 and expand Turtle Flying kiosks to 10,000 within this year.

FSMART has set a three-year revenue growth target of 20%, with 2026 growth expected at 7 to 8% from expansion of existing and new businesses. Managing Director Narongsak Lertsapthawee revealed that Boonterm kiosks, with over 120,000 points nationwide, will be upgraded to village banks, acting as agents for nine banks and offering deposit, withdrawal, transfer, and loan services. The company will also expand its customer base to foreign workers, particularly over two million Myanmar workers, of whom about 500,000 already use the service, and has received a license from the Bank of Thailand to provide remittance services back to their home country. The company is also preparing to become a distribution and payment channel for National Savings Fund lottery tickets, or retirement lottery, expected to launch by the end of this year. In the lending business, it targets an average annual portfolio growth of 50%, focusing on large corporate clients. For electric vehicle charging, GINKA EV aims to install a cumulative 1,000 AC and DC GINKA Charge points this year, increasing to 1,500 points in the next phase. Meanwhile, Tao Bin kiosks target expanding service points to 10,000 and adding new menu items. Additionally, the company is entering the one-stop service second-hand real estate trading platform business through a joint venture, Maew Som Estate Company Limited, leveraging the IT and payment system expertise of the FORTH Group to connect buyers, sellers, and financial institutions, with services also expected to launch by the end of this year.

FSMART plans to expand its Gingka EV electric vehicle charging points from the current 600 to 1,000 by the end of 2026, to support the growth of Thailand's electric vehicle market. It also aims to upgrade over 100,000 Boonterm kiosks into financial and government service hubs, expecting benefits from the retirement lottery policy that will use the kiosk network as a distribution channel. The current mobile loan portfolio stands at 1.6 to 1.7 billion baht, with a customer base of over 200,000, and still has significant growth potential through partnerships with various groups. Meanwhile, the Tao Bin automated café, with nearly 8,000 kiosks domestically, has expanded exports to almost 10 countries, achieving outstanding margins in international markets by reducing labor costs and offering 24-hour service.