Equity Analysis /

Interlink Telecom PCL: Will it light?

  • Big EGAT contracts clinched

  • NBTC tenders delayed

  • 2022 profit expansion, despite forecast cut

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Bualuang Securities
10 October 2022

Blue Solutions has won big contracts from EGAT, but ITEL’s NBTC tenders are behind schedule. Hence, we have cut our YE22 target price from Bt5.60 to Bt4.20, pegged to the mean tech stock PER of 30x, and our fully-diluted 2022 EPS forecast from Bt0.17 to Bt0.14.

Big EGAT contracts clinched

On Sep 27, Blue Solutions won two Access Network System contracts from EGAT worth Bt317m in total. (ITEL holds 51% of Blue Solutions.) These projects are due on Dec 10, which means big revenue will be re-cognized wholly in 4Q22. The two projects more than doubled Blue Solutions’ backlog from Bt226m at end-June 2022 to Bt582m as of Sep 28. We expect the two contracts to yield a Bt25m net profit to Blue Solutions (Bt13m to ITEL). The catch is that the new EGAT projects (10% GMs) carry slimmer margins than ITEL’s current project mix (about 15%).