On Tuesday at 11:31 AM (Bangkok time), the share price of True Corporation Public Company Limited (SET: TRUE) dropped by 3.33% or THB 0.40 to THB 11.60, with a trading value of THB 1.10 billion.
Advanced Info Service Public Company Limited (SET: ADVANC) fell by 2.45% or THB 7.00 to THB 279.00, with a trading value of THB 1.31 billion.
Krungsri Securities (KSS) noted that despite recent market turmoil stemming from disappointing fourth-quarter 2024 earnings season, ADVANC and TRUE have performed exceptionally well, with their share prices climbing nearly 9-11% over the past two weeks prior to this decline, in contrast with a 7% fall in the SET index. However, the widespread market downturn has prompted some profit-taking in these stocks.
From a fundamental perspective, competition within the ICT sector is expected to continue easing into 2025 and 2026, setting the stage for earnings growth driven by increasing average revenue per user (ARPU) and cost reductions. The analyst anticipates a 27.5% increase in EPS for TRUE and a 6.6% rise for ADVANC in 2025. Additionally, an impending auction is poised to further boost the sector’s earnings.
As KSS sees no shift in the fundamentals for ADVANC and TRUE, following the correction in their share prices, the analyst gives ‘Buy’ recommendations for both stocks, setting target prices of THB 311 and THB 15, respectively.
