Target price : Bt32
Recommendation : BUY
Closing Price (29 April 09) : Bt28
1Q09 profit was down 36.94% YoY, in line with expectations
- First quarter net profit recorded at Bt1,479.53m, which was in line with our figure of Bt1,438.04m.
- DTAC expects the NTC to issue 3G license next year.
- We forecast a net profit of Bt7,198.90m for this year.
- Our target price is at Bt32/share and we reiterate 'BUY' rating on the stock.
First quarter 2009 profit amounted to Bt1,479.53m, in line with our figure of Bt1,438.04m
Revenue for the first quarter dropped by 6.78% YoY but increased by 0.76% QoQ. Number of new subscribers totaled at only 263,151, down sharply from 468,718 subscribers QoQ and 884,194 seen YoY. Slowing economic condition has caused average MOU (Minutes of Used) to decline by 1.3% QoQ, 16.3% YoY to 307 minutes, while ARPU also retreated 0.6% QoQ, 18.9% YoY to Bt279/month. Revenue from IC was also weaker, falling to Bt3,266m from Bt3,958m YoY owing to aggressive on-net promotions from its rivals, ADVANC and TRUE. Likewise, revenue from IR (International Roaming) also declined.
Gross profit margin from services improved from 29.95% of sales in 4Q08 to 32.35% in this quarter. Although there was an increase in revenue sharing with CAT but the company also booked lower depreciation expenses, as well as IC charges. As revenue from IC declined by a greater percentage, there was a net IC payment of Bt272m against Bt240m QoQ. SG&A/sales ratio was fairly flat QoQ as although DTAC spent less on marketing charges, it incurred higher charges relating to staff and IT & depreciation. Meanwhile, interest payment fell along scheduled repayment and after netting tax expenses of Bt520.57m, the company recorded a net profit of Bt1,479.53m.
DTAC expects the NTC to issue 3G license next year.
According to DTAC, 3G license on 2.1G frequency should be issued next year. It is however pending for approval in order to process on 3G service on the 850MHz.
We forecast a net profit of Bt7,198.90m for this year.
DTAC forecasted number of subscribers at 8.8m in view that the penetration rate is moving close to 100%, while the economic outlook is bleak. It expected to achieve new subscribers of 1.1-1.2m this year. We project a revenue growth of only 1.8% YoY to Bt68,914.37m. Costs will continue to increase from higher depreciation on network expansion. A net payment is still expected for IC in view of aggressive on-net schemes from its rivals. The company will also incur office relocation expenses to be booked in 2Q. In sum, we project a net profit of Bt7,198.90m, down from Bt7,479m YoY (excluding extra income from the litigation case with DPC).
Our target price is at Bt32/share and we reiterate 'BUY' rating on the stock.
By Phillip Securities (Thailand) Plc. on Apr 30, 2009
USA Cities
Hempstead New York ,St. Petersburg Florida ,Omaha Nebraska,Denver Colorado,Chandler Arizona,Glendale Arizona,Columbus Ohio,Detroit Michigan,Austin Texas,Buffalo New York ,Scottsdale Arizona,Colorado Springs Colorado ,Tucson Arizona,Oakland California,Aurora Colorado,Baltimore Maryland,Albuquerque New Mexico ,Baton Rouge Louisiana ,Fresno California,Memphis Tennessee,Raleigh North Carolina ,Dallas Texas ,Pittsburgh Pennsylvania,St. Louis Missouri ,Oklahoma City Oklahoma ,St. Paul Minnesota ,Long Beach California ,Lexington-Fayette Kentucky,Minneapolis Minnesota,Sacramento California,San Antonio Texas,Oyster Bay New York,Toledo Ohio,Philadelphia Pennsylvania ,Houston Texas ,Chicago Illinois ,New Orleans Louisiana ,Wichita Kansas ,Charlotte North Carolina ,Lubbock Texas,Durham North Carolina ,Madison Wisconsin,Lincoln Nebraska,Boston Massachusetts,Orlando Florida,Jersey City New Jersey,Nashville-Davidson Tennessee,Akron Ohio,Henderson Nevada,Greensboro North Carolina ,Milwaukee Wisconsin,Rochester New York ,Atlanta Georgia,New York New york,Fort Wayne Indiana ,Fort Worth Texas ,Tampa Florida,Chesapeake Virginia,Honolulu Hawaii,Santa Ana California ,San Francisco California ,Bakersfield California,Corpus Christi Texas ,Newark New Jersey ,Anaheim California,Jacksonville Florida,Cleveland Ohio,Seattle Washington,North Hempstead New York,Virginia Beach Virginia ,Stockton California,Tulsa Oklahoma,Laredo Texas,Miami Florida,Portland Oregon ,Arlington Texas ,San Jose California ,Las Vegas Nevada ,Chula Vista California ,Washington District of Columbia,Reno Nevada,Riverside California,Plano Texas,Phoenix Arizona ,San Diego ,Babylon New York ,El Paso Texas ,Los Angeles California,Mesa Arizona,Modesto California,Anchorage Alaska,Cincinnati Ohio,Islip New York ,Norfolk Virginia,Brookhaven New York ,Birmingham Alabama,Garland Texas,Hialeah Florida,Indianapolis Indiana,Kansas City Missouri
ไม่มีความคิดเห็น:
แสดงความคิดเห็น