Kiatnakin Phatra Securities (KKPS) expected Advanced Info Service Public Company Limited (SET: ADVANC) to record a high single-digit profit growth in the third quarter despite a soft season.
KKPS expected profits to reach Bt8.3 billion, reflecting a 9% increase year-over-year. However, there is a projected 3% decline quarter-over-quarter. These profits for the nine-month period are projected to constitute 77% of the full-year forecast of KKPS and the Bloomberg consensus.
Although the third quarter typically represents a slower season for the mobile phone business, revenue growth momentum continues to be promising, with a projected 5.0% year-over-year growth in mobile revenue for 3Q24. Additionally, fixed broadband revenue is expected to exhibit growth both quarter-over-quarter and year-over-year, attributed to the consolidation of 3BB in the fourth quarter of 2023 and an acceleration in net additions. However, an increase in costs is projected for the quarter due to intensified marketing activities and bonus provisioning.
KKPS reiterated its “BUY” recommendation on ADVANC as well as growth estimates, while the Price Objective (PO) from Bt285 to Bt314 for the upcoming year of 2025, citing decent earnings growth and an attractive yield as driving factors.
