In today’s briefing:
- BCPG: Gain from Indonesia Asset Divestment
- ADVANC: 5G and Enterprise Segment Will Drive Strong Growth in 2022
BCPG: Gain from Indonesia Asset Divestment
- BCPG’s 4Q21 net profit fall to Bt238m (-24% YoY, -65% QoQ),a 16-quarter low, mainly dragged by FX loss. The recurring profit stood at Bt583m (+9% YoY,-18% QoQ),inline with our expectation
- The revenue recognition from new 20MW project in Japan (4Q21) resulted the YoY growth. While QoQ drop was due to seasonal weak hydro operation.
- The company announced divestment of its full stake (33%) in Indonesia geothermal power project. BCPG will book a gain of B1.6bn from the deal
ADVANC: 5G and Enterprise Segment Will Drive Strong Growth in 2022
- Upgrade to BUY rating with new TP of Bt269 (up 19% from previous TP), based on DCF, implying 24.1xPE’22. Analyst meeting came out with positive tone about new strategic direction
- Expect Enterprise revenue to contribute 20% of total revenue by 2025. Management believes this segment will reach 20% of total revenue by 2024.We believe differently as we expect further competition
- Revised 22E and 23E net profit upwards by 4% and 13%, respectively, to factor in high revenue growth. While 2022 will demonstrate healthy net profit growth, we believe enterprise segment
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