Our BUY rating stands, based on an attractive valuation with its current 4% holding discount and the expected 2H22 core earnings recovery.
Consistent with our model
INTUCH posted a 2Q22 net profit of Bt2.64bn, down 6% YoY but up 3% QoQ. Excluding extra items in 2Q22—1) Bt94m in THCOM’s proportionate FX gain, 2) Bt7m in THCOM’s proportionate reversal of impairment loss, 3) Bt25m in ADVANC’s proportionate tax benefits from investment and 4) Bt135m in ADVANC’s proportionate net FX loss—its core profit was Bt2.65bn, up 1% YoY and 5% QoQ. Net and core profits were consistent with our model, led by ADVANC’s results. ADVANC’s core profit was aligned with our model but THCOM’s Bt64m 2Q22 core profit beat our previous Bt100m core loss forecast thanks to higher sales and GM, lower SG&A and shallower LTC loss than predicted.