TRUE shares fall 6.72%: China Mobile sale rumor doesn't affect fundamentals

TRUE (True Corporation Public Company Limited) fell sharply in the Thai stock market on the afternoon of June 25, dropping 6.72%. The market focus came from an unconfirmed rumor that China Mobile may be considering selling about 7-8% of its stake.

KEY POINTS

  • TRUE shares fell 6.72% in the afternoon on June 25.
  • The main reason was unconfirmed news that China Mobile may sell about 7-8% of its stake.
  • CGS International (Thailand) said the selling pressure came from external factors and does not affect the company's fundamentals.
  • The reason fundamentals are not affected is that TRUE's core management structure remains unchanged, and the company does not rely on China Mobile for management.
  • Analysts also believe TRUE still has positive earnings drivers ahead; the share-price correction may be a good entry point for risk-tolerant investors.

On the afternoon of June 25, TRUE shares in Thailand fell 6.72%.

TRUE drops sharply 6.72% on rumors that China Mobile may sell shares; brokers say fundamentals are unaffected

According to checks of IR-related information, China Mobile currently holds about 7-8% of TRUE and has one representative on the board, but it does not play a direct management role.

However, the selling pressure is seen as unrelated to the company's business fundamentals and mainly driven by external factors, because TRUE's core management structure remains unchanged and operations do not depend on China Mobile's management.

At the same time, Thailand's telecom industry is still moving toward a favorable growth path. With only AIS and TRUE remaining as the main players, competitive pressure has eased, helping support long-term revenue stability.

As for TRUE's earnings outlook, several positive factors remain, including expectations that Q2 FY2026 profits will stay in a healthy range and that cost-cutting plans will continue; future share prices may also be supported by expectations of ongoing dividend payments.

In terms of strategy, the market sees the sharp drop caused by the rumor as an opportunity to buy in tranches on dips for investors who can tolerate volatility, while more risk-averse investors should wait for the company to disclose clearer information before deciding.

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