Advanced Info Service Public Company Limited (SET: ADVANC) should be expecting a strong 1Q performance this year due to an increase in revenue from the mobile segment and the recognition of its synergy with TTTBB.
Analysts were expecting 6-10% QoQ core profit growth in 1Q24, while the year-on-year growth for the quarter was expecting at 8-12%.
Growth on a quarterly basis should beat expectations as it was predicted earlier that development QoQ should be flat due to the merger with TTTBB, but with its increasing core revenue and effective cost management measure, the company should record an outstanding growth in the first quarter.
Yuanta Securities states that there is an upside risk toward faster-than-expected deceleration in competitiveness in the mobile market, while having a limited downside risk. The current valuation has priced-in the negativity that the market expected earlier in the year. Yuanta expects ADVANC’s 1Q24 earnings to beat expectations, recommending investors to accumulate with a target price at THB245.00 per share.
Asia Plus Securities expects an increase in 1Q24 revenue would be due to mobile businesses from higher ARPU, resulting from price structure adjustments and increasing tourist traffic supporting international calling services and SIM cards for tourists. Meanwhile, broadband business, including TTTBB, will see a full-year recognition in revenue.
Asia Plus Securities gave a “BUY” recommendation with a target price at THB252.00 per share.
Krungsri Capital Securities states that upside to 2024 earnings estimates will be based on the management of SG&A/Sales throughout the year as well as the bidding with NBTC. The current valuation is still laggard, seeing a 6% drop from January, compared to TRUE that rose 52% YTD. Still, ADVANC is a dividend stock that pays around 4% of yields annually.
Krungsri Capital Securities maintained its “BUY” rating with a target price at THB260.00 per share.
KGI Securities expects ADVANC to repot a 1Q24 net profit of THB7.10 billion (+5% YoY and +1% QoQ) and core profit of THB7.23 billion (+8% YoY, +10% QoQ). Growth would be driven by realiziation of more rational pricing on most packages (ARPU to rise in both mobile and Fixed Broadband (FBB) business) and cost control.
KGI notes that its “Outperform” call stands with a higher target price of THB260.00 per share, saying that momentum should be fueled by earnings growth on the decent rise in ARPU for mobile and FBB.
