Brokers see UBS stake in TRUE as vote of confidence in Thai telecoms, re-rating hopes grow
Analysts say UBS AG’s large purchase of TRUE shares from the CP Group signals confidence in Thailand’s post-merger telecom market and TRUE’s management, with synergy gains supporting steadier EBITDA and cash flow and leaving room for a valuation re-rating.
Following a report on the Stock Exchange of Thailand’s disclosure system regarding a change in the shareholding structure of True Corporation Plc (TRUE), analysts in the capital market have viewed UBS AG’s large acquisition of TRUE shares from the CP Group as a positive signal for the industry outlook and the company’s medium- to long-term growth potential.
A source among analysts said the investment by a global financial institution reflects confidence in the structure of Thailand’s telecom market. After the sector’s merger in 2023, price competition has become less intense and the industry has moved into a phase of harvesting synergies in both network costs and operating expenses, supporting more stable trends for EBITDA and cash flow.
The analyst source added: “The market structure is clearer today. Duplicate investment has fallen, and the quality of earnings is more sustainable than before. This is the moment large institutions begin to increase their weighting again.”
Another factor the market is focusing on is the management team, particularly Sigve Brekke, who has international telecom management experience and expertise in post-merger integration—helping reduce operational risk and accelerate synergy realisation.
At the same time, the vision of Suphachai Chearavanont—positioning TRUE as a core pillar of a digital ecosystem spanning 5G, data, cloud and digital services—is seen as a long-term strength that expands the company’s growth beyond traditional telecoms.
Analysts also noted that Thai telecom stocks continue to trade at a valuation discount compared with some regional peers. If TRUE can deliver sustained growth in earnings and cash flow, the scope for a re-rating remains open.
Overall, the market views the deal as a signal of confidence in the industry structure and management capability rather than a short-term negative factor, with the next phase of share-price direction expected to hinge primarily on operating results and the ability to generate added value.
