It remains our sectoral pick, premised on its service revenue recovery in 2023 and a decent dividend yield of 4%.
Net profit aligned with model, but core profit slightly missed
ADVANC posted a net profit of Bt6.03bn for 3Q22, down 5% YoY and 4% QoQ. Excluding extra items in 3Q22—Bt231m in net FX loss and Bt62m tax benefit from investment—core profit was Bt6.2bn, down 7% YoY and 6% QoQ. Net profit was in line with our model, but core profit was below our estimate by 4% due to lower core service revenue (lower mobile and enterprise nonmobile revenues) and higher network OPEX (rising energy costs) than estimated. Core service revenue missed our estimate by 0.7%. Service costs beat our model by 1%. SG&A expenses were 6% below our model, thanks to lower marketing expenses than modeled.