Our TRADING BUY stands, premised on the progress of partnership deal between THCOM and NT and the new NBTC expected in Nov 2021 which will pave way for the auction of orbital slot licenses in 1H22.
Core number exceeded our model
THCOM posted a Bt146m net profit for 3Q21, up 90% YoY and a reversal from Bt41m 2Q21 net loss. Excluding extra items in 3Q21—1) Bt206m FX gain and 2) Bt18m in loss on asset impairment—it posted a Bt42m 3Q21 core loss, deeper in the red by 52% YoY but shallower by 58% QoQ. The bottom-line beat our Bt150m net loss estimate due to higher FX gain and shallower core loss than modeled. Core loss was 67% shallower than our model due to higher conventional satellite sales (bookings of one-time sales project which was a one-off service) and lower service costs (lower depreciation and concession fees). Sales beat our estimate by 23% led by the one-time sales project. Gross profit beat our model by 111% thanks to lower OPEX than estimated.