Equity Analysis /
Thailand

Advanced Info Service PCL: Enterprise segment—a key growth engine

  • Enterprise segment—one of ADVANC’s main growth engines

  • Big opportunity for ADVANC in cloud & data center market

  • Solid growth in cyber security/IoT/M2M market in Thailand

Bualuang Securities
7 September 2021

With its aim to push enterprise segment as a growth engine pillar, we believe that its enterprise revenue will continue to deliver double-digit growth momentum during 2021-22, underpinning post COVID-19 service revenue recovery in 2022. ADVANC remains our top pick in the ICT space, premised on the 2022 core earnings rebound and its cheap valuation—EV/EBITDA of 7.5x against its recent high PER of 9.1x in Aug 2019.

Enterprise segment—one of ADVANC’s main growth engines

With its: 1) 30 years-plus of experience in providing Cloud, Data Center and ICT (CCII) solutions, 2) more than 2.6m business connections, 3) 70% market share in mobile B2B, 4) more than 50k business links network, 5) 30% YoY growth in cloud business, 6)  No.1 rank with more than 970k subscribers in M2M/IoT (machine-to-machine/internet-of-things), 7) competitive advantages with the most extensive nationwide fiber coverage of more than 160k kms and 8) strong application development team/platform as well as CSL’s strong and experienced ICT team, we are confident that it will continue to deliver a double-digit growth of 10-15% in enterprise revenue during 2021-22 by offering selective CCII solutions together with its strategic partners with additional minor investment of staff and data centers.