Waraporn Wiboonkanarak

Krungthai XSpring

Equity Bottom-Up

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<p>Earnings Review</p>
<h2>Thaicom Plc. (THCOM)</h2>
<p>Information &amp; Communication Technology</p>
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<h3>Loss from core operation narrowed in 2020</h3>
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<p>THCOM’s 2020 NP beat the market’s expectation, but the core operation remained in the red. Although we believe THCOM could turn around its core earnings into profit in 2021E, the highlight will be the new businesses aimed at sustaining its post-concession operation. The share price has outperformed since last year, implying that the positives are likely priced in. We…</p>
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<p>Company Update</p>
<h2>Thaicom Plc. (THCOM)</h2>
<p>Information &amp; Communication Technology</p>
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<h3>Core operation again reversed to a loss in 3Q20</h3>
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<p>THCOM’s core operation again reversed into the red in 3Q20, mainly on weak satellite revenue. However, its share price has outperformed the market YTD and, in our view, has partially priced in the new business prospects under various partnerships to sustain its post-concession operation. We, thus, leave our Sell rating unchanged and roll over our DCF-based target…</p>
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<p>Earnings Review</p>
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<h2>Thaicom Plc. (THCOM)</h2>
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<p>Information &amp; Communication Technology</p>
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<h3>2Q20 NP beat forecast on extra items</h3>
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<p>THCOM delivered an impressive bottom line in 2Q20, chiefly on compensation income. Its core operation, nevertheless, remained weak thanks to declining satellite revenue. Although THCOM is now seeking new businesses to sustain its post-concession operation, we still have doubts about the contribution, particularly in the near term. We, thus, leave our Sell rating…</p>
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<h2>Thaicom Plc. (THCOM)</h2>
<p>Information &amp; Communication Technology</p>
<p><strong>Earnings turnaround in 1Q20 was priced in</strong> </p>
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<p>THCOM's 1Q20 results came in far above our estimate on effective cost control, which explains the 65% share price rally in the month of April. Nevertheless, the outlook remains challenging due to the continuation of the declining revenue trend and the lack of clarity regarding its operational continuity. We, thus, downgrade the rating to Sell, with the DCF-based target price of Bt3.20.</p>
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<p><strong>1Q20</strong>…</p>

Thailand

Thaicom PCL operates satellite communication business. The Company operates and provides satellite transponder services. Thaicom also provides Internet, satellite uplink/downlink, and telephone network services.