Kiatnakin Phatra Securities (KKPS) expected Advanced Info Service Public Company Limited (SET: ADVANC) to maintain its good performance in the first quarter this year amid easing competition in the sector and effective cost control to mitigate higher electricity bills.
KKPS expected the company to record 6.5 billion baht of pre-exceptional profit in 1Q23, representing an increase by 2% YoY, but down 6% QoQ due to seasonal factors. 1Q23 estimated profit makes up 24%/23% of KKPS’ full-year forecast/consensus.
Mobile phone competition is expected to continue easing as every operator raised the entry level of postpaid packages by 14% in 1Q23. This effective price hike would raise ARPU/revenue for the company. Meanwhile, FBB/enterprise revenue is expected to continue to report double-digit growth YoY.
Despite electricity bills accounting for 7% of its total cost of service expected to increase QoQ in 1Q23, ADVANC’s cost control measures, which curbs other costs, is expected to mitigate the impact of higher electricity bills. The bills should peak in the first quarter and start to decline from 2Q23 onward.
In addition, KKPS expected ADVANC to record 6.6% net income growth in 2023 and 8.5% in 2024 with a target price of THB 228 per share.
