We expect a strong 3Q22 profit. Projects won earlier in the year are progressing and new contracts keep rolling in. AIT’s current backlog covers 63% of our 2H22 top-line assumption. We have a BUY call to a YE22 target price of Bt8.35.
Strong YoY and QoQ earnings growth lined up for 3Q22
Our model points to a Bt160m core profit for 3Q22, up by 37% YoY and 32% QoQ. At the 2Q22 analyst meeting on August 29, management was uncharacteristically confident over the 3Q22 outlook. Notable new projects are the Social Security Office’s (SSO) Customer Data Platform (worth Bt257m), phase-2 of the Govt Data Center and Cloud services (GDCC) project for National Telecom (Bt219m), and the SSO’s Geographic Information System (Bt184m). The revenues from these contracts will initially be modest, but will add to existing big projects, such as for State Railway of Thailand and Thailand’s new parliament. We expect a stable QoQ GM of about 17%, as there aren’t any new projects with unusually fat or slim margins ahead. Looking to 4Q22, early signs indicate robust project acquisition and revenue.