Earnings Report /
Thailand

Advanced Information Technology PCL: Deep core miss, but just QoQ noise

  • Core profit below our estimate

  • AIT posted a 1Q22 net profit of Bt166m

  • The 35% YoY dive in core profit was due to a plunge in revenue

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Bualuang Securities
13 May 2022

Our TRADING BUY rating stands to a target price of Bt9.20. State agencies will open more project tenders as COVID-19 fades from view. This will greatly benefit AIT as 2022 progresses, especially in 2H22. And the firm’s expansion into cloud, big data analytics, software-defined networking, cybersecurity, and IoT should propagate long-term business and earnings growth.

Core profit below our estimate

AIT posted a 1Q22 net profit of Bt166m, up by 46% YoY and 4% QoQ. Excluding a Bt109m gain from selling the Genesis Data Center in 1Q22, core profit would be Bt79m, down by 35% YoY and 66% QoQ. Net profit beat our estimate, but the core number was 45% below our expectation due to revenue miss.