ITEL executives kept 22.5 million more shares, totaling 32.86 million shares in hand. Brokers, Choir, cheer to buy, giving a target price of 4.90-5.70 baht, expecting a net profit of 52 million baht in the third quarter, down 18% from the same period last year. from higher cost of data center business after increasing electricity cost But the outlook for the last quarter of the year will come back to recover from network installation business that deliver more work
news report from The Securities and Exchange Commission (SEC) stated that on October 18, 2022, Mr. Nattanai Anantaramporn, Chief Executive Officer of Interlink Telecom Public Company Limited or ITEL made the transaction. Acquired 22.50 million ordinary shares of ITEL at an average price of 3.62 baht per share, totaling 81.45 million baht, resulting in the number of securities and derivatives held after the transaction date 32,869,691 shares.
Previously, ITEL announced that it has continued to pursue work in accordance with the company’s New S-Curve plan, especially projects related to the Security Analytics business to take care of the complete security and the Tele of Everything business to use in the business. in a remote area drive the company’s business to grow strongly in the future Especially the current situation where the demand for telecommunication networks is increasing rapidly. can generate income for the company in the future which is sure to grow by leaps and bounds and continue in the next 3-5 years
Meanwhile, yesterday (Oct. 19) the Stock Exchange of Thailand (SET) announced that 379,168 shares of ITEL capital increase resulting from the conversion of ITEL-W3 warrants were traded on the stock market. It’s the first day The exercise ratio for conversion to ordinary shares is at 3.30 baht per share.
Nomura-Yuanta cheered to buy, giving a target of 5.70 baht and 4.90 baht.
The analysis of securities from Nomura Securities Pattanasin indicates that we have a Neutral view on the trend of 3Q22F and expect a net profit of 52 million baht (-18%yy -21%qq), a decrease in line with our previous assessment due to 1) It is expected that there will be a higher impact on the cost of the data center business from the electricity cost. And the delivery network installation business has %margin lower than the previous year, causing the total %Gross margin to decrease yy to 19.4% 2) It is expected that the financial expenses will increase from the lease liabilities. Consequently, total service costs (+59%yy -10%qq) are expected to be higher than total revenue growth (+46%yy -10%qq).
4Q22F preliminary outlook, net profit is expected to grow qq in line with the recovery in network installation business, expect more deliveries and better %Gross margin yy and qq. In addition, early 4Q22F should be clear. Bidding and signing Course Online work totaling 665 million baht (company + subsidiary company). Executives expect that by the end of this year, the company has the opportunity to sign more jobs, including USO-TOT, E-budgeting, CCTV in the south, region. Northeastern, which will build on the current backlog of the network installation business with a residual value of approximately 814 million baht (excluding Backlog of Blue Solution Co., Ltd.).
Maintain BUY rating for ITEL (TP23F Bt5.70) as 1) Expect 4Q22F high net profit growth qq 2) Expect better 23F growth from revenue growth, %Gross margin, overall improvements in all 3 core businesses, and 3) Price. Stocks responding to 3Q22F outlook is not bright
In terms of securities analysis, Yuanta Securities (Thailand) revealed that it expects a normal profit in 3Q22 of 50 million baht (-24.8% QoQ, -21.8% YoY), with a downward revision of the 2022/2023 projection by 24% and 29% accordingly. Ranking is the normal profit in 2022 at 246 million baht (-2.1%YoY) and the normal profit in 2023 at 320 million baht (+30.3% YoY), respectively.
We maintain our BUY rating, but we revisit our fair price at the end of 2023 to Bt4.90 per share based on PER 22.7x, equivalent to the 5-year historical average. Strategic should wait for the weak 3Q22 budget. before returning to the collection to win a recovery in 2023