Our TRADING BUY stands based on the improved service revenue in 2022 on the domestic consumption recovery and full reopening in 2022.
Heftier core loss than modeled
TRUE posted a 3Q21 net loss of Bt603m, a reversal from a Bt104m net profit in 3Q20 and deeper in the red by 102% QoQ. Excluding extra items in 3Q21—Bt218m FX gain and Bt163m in other extra gains—and one big extra gain item in 3Q20—Bt1.5bn gain from the 2.8% sell-off of TRUE’s stake in DIF—it posted a Bt984m core loss, shallower by 14% YoY but deeper in the red by 240% QoQ. Net and core losses were deeper than our model by 58% and 146%, respectively, due to higher service costs and lower share of profit from DIF than estimated. Group’s service revenue was in line with our estimate. Gross profit and after-tax loss missed our model by 10% and 40%, respectively.