We expect a stronger profit for 2Q22 after AIT’s seasonally weak 1Q22 number. With new projects underway in 2Q22, revenue recognition will follow. The backlog is big—equal to 65% of our revenue assumption for the final nine months of 2022. And AIT plans to team up with SABUY to offer data center and cloud services. We have a TRADING BUY call to a YE22 target price of Bt9.20.
Start in 1Q22, prosper in 2Q22
Our model points to a Bt149m core profit for 2Q22, up by 9% YoY and 88% QoQ (seasonality). AIT’s new projects mostly follow the govt’s budget disbursement schedule. In 1Q22, the firm announced that it was working on the Royal Thai Navy’s underground cable project in Eastern Aviation City (U-Tapao Airport and vicinity) worth Bt419m. Revenue recognition started in 1Q22 but will be more substantial in 2Q22. The State Railways of Thailand’s train tracking & freight management system—announced in 4Q21 and started in 2022—followed a similar starting timeline and should boost 2Q22 income in a similar manner.