Blue Solutions has won big contracts from EGAT and ITEL has picked up an e-Budgeting contract from the Budget Bureau. ITEL’s 2022 performance will be flattish YoY. We forecast 21% YoY profit growth for 2023, but there is some uncertainty, so our HOLD call stands.
ITEL recently expanded its scope of business to include drone and anti-drone projects. In 3Q22, unmanned aerial vehicle contracts added Bt132m to revenue (drone and anti-drone work played a part in providing security for the last week’s APEC Summit in Bangkok). ITEL is also in talks with a real estate firm regarding drone and anti-drone projects. While investors may be concerned over news that hyperscalers, such as Amazon Web Services, are investing directly in their own regional data centers in Thailand, there should still be opportunities for ITEL in edge data centers (localized data centers that are closer to users than regional centers).