Advanced Info Service (ADVANC TB): Telecommunications Giant Surges Ahead
Recommendation: BUY (Maintained)
Target Price: Bt330.00
Upside: +17.9%
Advanced Info Service (ADVANC), Thailand’s largest telecommunications provider, showcased impressive growth in 4Q24. The company’s net profit for the quarter stood at Bt9.3 billion, marking a 32% year-on-year (yoy) and 5% quarter-on-quarter (qoq) increase. This result exceeded market expectations by 5%. The growth was driven by higher revenue, improved gross margins, and lower SG&A-to-sales ratios.
ADVANC’s annual earnings for 2024 amounted to Bt35 billion, reflecting a stellar 32% yoy growth. Key highlights included a 10.6% yoy boost in revenue to Bt56.7 billion in 4Q24, supported by contributions from Triple T Broadband (TTTBB) and seasonal mobile and roaming revenue upticks. Blended ARPU rose to Bt228 per month, further fueled by an 8% yoy growth in prepaid ARPU.
Looking to 2025, ADVANC anticipates continued growth, with mobile revenue projected to rise by 5% yoy, driven by improved ARPU trends and a reduction in competition. The company declared an interim dividend of Bt5.74/share for 2H24, bringing the total 2024 dividend to Bt10.61/share. With a high dividend yield and solid financial metrics, ADVANC remains a top pick in the telecommunications sector.
Ngern Tid Lor (TIDLOR TB): Strong Recovery Momentum
Recommendation: BUY (Maintained)
Target Price: Bt22.00
Upside: +26.4%
Ngern Tid Lor (TIDLOR), a leading non-bank lender, reported a net profit of Bt1.04 billion in 4Q24, up 16% yoy and 5% qoq. Asset quality improved during the quarter, with the NPL ratio declining to 1.81%. Credit costs also fell to 272 basis points, reflecting the company’s stringent lending policies and portfolio cleanup efforts.
For 2024, TIDLOR achieved a record net profit of Bt4.2 billion, up 11.6% yoy, despite facing credit quality challenges. The company’s loan portfolio expanded by 6.6% yoy to Bt103.9 billion, although it missed its 10-20% growth target. TIDLOR opened 31 new network stores in 4Q24, bringing the total store count to 1,778, further strengthening its market presence.
Looking ahead, TIDLOR is expected to see continued improvement in asset quality and loan portfolio expansion. The company revised its 2025-26 earnings forecasts slightly downward, reflecting a conservative approach amid slower economic recovery. With a strong focus on financial literacy and sustainability, TIDLOR remains a compelling investment option.
SVI (SVI TB): Outperforming Expectations
Recommendation: BUY (Maintained)
Target Price: Bt8.00
Upside: +15.9%
SVI, a leading EMS company, posted an impressive 4Q24 net profit of Bt318 million, up 44% yoy and 93% qoq. This result exceeded market expectations by 48%. The surge in earnings was attributed to higher gross margins, driven by favorable currency impacts and a better product mix.
While revenue remained flat yoy at Bt5.3 billion, gross margins improved to 9.3%. The company’s 2024 net profit rose 49% yoy to Bt1.4 billion, supported by baht appreciation and product diversification. For 2025, SVI expects revenue growth of 10-15%, driven by demand recovery in sectors such as bitcoin mining, industrial control, and security cameras.
SVI’s diversified revenue segments and robust gross margins position it strongly for future growth. The company also announced a dividend of Bt0.24/share for 2024, reflecting a yield of 3.5%.
Banpu (BANPU TB): Challenges Persist Despite Optimism in Gas Business
Recommendation: HOLD (Maintained)
Target Price: Bt5.00
Upside: +5.5%
Banpu reported a challenging 4Q24, with an expected net loss of Bt1.1 billion due to weak performance in the utilities and coal businesses. However, the gas business showed signs of recovery, with sales and selling prices rising 2% and 21% qoq, respectively, driven by seasonal demand.
For 2024, Banpu’s net profit forecast was cut to Bt559 million, reflecting a 90% yoy decline. The company’s coal business saw declining sales prices, while the Australian mines faced increased production costs. Despite these challenges, Banpu remains optimistic about the US gas market, supported by favorable policies and higher price projections for Henry Hub gas.
Banpu continues to focus on its greener strategies, aiming to increase renewable energy capacity and reduce greenhouse gas emissions. While near-term challenges persist, the long-term outlook for its gas business offers a glimmer of hope.
Minor International (MINT TB): Thriving in Hospitality
Recommendation: BUY (Maintained)
Target Price: Bt38.00
Upside: +52.6%
Minor International (MINT) is expected to report a robust core profit of Bt3.1 billion in 4Q24, up 24.5% yoy and 18.1% qoq. Key drivers include stellar performance from European and Thai hotels, along with a surprising recovery in the Maldives. The food segment in Thailand also performed well, with signs of improvement in the China hub.
MINT has been actively deleveraging by selling account receivables to repay loans, reducing its net interest-bearing debt-to-equity ratio to 0.85x by the end of 4Q24. The company revised its 2024 net profit forecast upward by 7.7%, reflecting better-than-expected performance.
With a target price of Bt38.00, MINT’s valuation remains attractive. Its strong hotel portfolio, active debt management, and promising interest rate outlook make it a compelling investment choice.
PTT (PTT TB): Mixed Results but Positive Outlook
Recommendation: BUY (Maintained)
Target Price: Bt36.00
Upside: +17.07%
PTT, Thailand’s leading oil and gas company, faced a challenging 4Q24 with a net profit decline of 43% qoq and 71% yoy to Bt9.3 billion. The decline was due to reduced gas sales volumes and foreign exchange losses. However, subsidiaries and affiliates reported a turnaround to a net profit of Bt12.5 billion, driven by improved refinery and oil station operations.
Looking forward, PTT’s 1Q25 core profit is expected to improve, supported by higher GSP profits and stronger performances in the petrochemical and refining businesses. The company forecasted a 2024 dividend of Bt1.80/share, maintaining its commitment to shareholder returns.
PTT continues to focus on low-carbon growth strategies, aiming for carbon neutrality by 2040 and net zero emissions by 2050. Despite near-term challenges, its diversified portfolio and strong ESG initiatives position it well for long-term growth.
