The ICT sector was among the top leaders to push SET Index higher in yesterday’s session, led by a 4.63% gain in Advanced Info Service Public Company Limited (SET: ADVANC), a 3.93% gain in True Corporation Public Company Limited (SET: TRUE) and a 2.82% gain in Total Access Communication Public Company Limited (SET: DTAC) as SET Index closed at 1,641.47 points, increased 14.68 points or 0.90%.
Asia Wealth Securities (AWS) gave an Overweight rating on the sector, expecting 2022 to be the year of recovery for the sector while raising ADVANC as its top pick.
AWS stated that there are three factors supporting ICT to return (1) The country’s opening supports the economic recovery and the number of users increasing. (2) Declining competition supports ARPU to recover in the medium and long term, and (3) Internet business is continually growing so AWS expected the industry will recover in 2022, driven by economic recovery.
AWS expected the conclusion of the DTAC-TRUE merger will be clear in 2H22, if successful, the securities company viewed it as a positive industry sentiment due to lower competition. In addition, AWS recommended Overweight and choose ADVANC as a top picks, with an upside from the business trend to grow again from both the core business and the new S-Curve.
