Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Equity Bottom-Up

Advanced Info Service  / Equity Bottom-Up

<p><strong>ADVANC reported 1Q21 net profit of Bt6.6bn (-2%YoY, -7%QoQ). The 3M20 result was 24% of our full-year forecast.</strong></p><div>• Excluding FX gain/loss items, 1Q21 earnings from continuing operations was at Bt6.9bn (-4%YoY, +3%QoQ).</div><div></div><div>• A decrease in earnings performance YoY was due to higher amortization cost from 5G spectrum license.</div><div></div><div>• ARPU continuously decreased to Bt232 (-4%YoY,-1%QoQ), an all-time low level. Meanwhile, mobile subscriber was at 42.8 million subscribers (+4%YoY,+3%QoQ), an all-time high level.</div><div></div><div>• Maintain its leadership position and growth momentum.</div><div>
<br>
</div><p><strong>We maintain BUY rating and target price of Bt233.0, derived from a DCF, implying 24.8xPE’21E, 7% premium to the World telecoms sector. Our rating are also backed by robust earnings with 4% dividend yield and its largest total spectrum of bandwidth compared to peers.</strong></p>

ADVANC reported 1Q21 net profit of Bt6.6bn (-2%YoY, -7%QoQ). The 3M20 result was 24% of our full-year forecast.• Excluding FX gain/loss items, 1Q21 earnings from continuing operations was at Bt6.9bn (-4%YoY, +3%QoQ).• A decrease in earnings performance YoY was due to higher amortization cost from 5G spectrum license.• ARPU continuously decreased to Bt232 (-4%YoY,-1%QoQ), an all-time low level. Meanwhile, mobile subscriber was at 42.8 million subscribers (+4%YoY,+3%QoQ), an all-time high level.• Maintain its leadership position and growth momentum.
 
We maintain BUY rating and target price of Bt233.0, derived from a DCF, implying 24.8xPE’21E, 7% premium to the World telecoms sector. Our rating are also backed by robust earnings with 4% dividend yield and its largest total spectrum of bandwidth compared to peers.

ADVANC: 1Q21 Normalized Earnings Slightly Recovered QoQ