Our TRADING BUY stands in anticipation of the NBTC’s auction of satellite orbital slot licenses expected in late-2022 or in 1H23.
Core number exceeded our model
THCOM posted a Bt309m net profit for 2Q22, a YoY turnaround from a Bt41m 2Q21 net loss and up 511% QoQ. Excluding extra items in 2Q22—1) Bt229m FX gain and 2) Bt16m in reversal of loss on asset impairment—it posted a Bt64m core profit for 2Q22, against a Bt101m 2Q21 core loss and up 489% QoQ. Net profit beat our estimate by 138% while core number beat our previous Bt100m core loss forecast thanks to higher sales and GM, lower SG&A and shallower LTC loss. Sales beat our model by 5% led by higher transponder service revenue from overseas customers. SG&A expense was 8% below estimate due to the cost-cutting initiatives. GM of 48.8% was higher than our 48% estimate. Equity loss from LTC was 43% shallower than our model.