The Nation




4Q13: iPSTAR paying off to bring 11-year high

Thaicom Plc (THCOM)

4Q13 core hit 11-year high of Bt457mn (84% YoY and 25% QoQ) thanks to iPSTAR and the sale of its loss-making mobile business in Cambodia. Other income pushed 4Q13 above SCBS.

2014F growth another 32%. 2013 brought impressive earnings growth of 73% and we expect 2014F to be another good year with 32% growth, backed by continued iPSTAR growth, especially in China (just started in Nov 2013), Thaicom 6 (launched in Jan 2014 with 66% of transponders already booked) and the launch of Thaicom 7 ~mid-2014. We maintain our Buy with a new TP of Bt46 (rounded up) after rolling to end-2014. TP is based on SOTP consisting of Bt42.9/sh for satellite and telephony business (WACC 9.5%, 1% terminal growth) and Bt3/sh for its 42% in CSL (from mid-year TP of Bt42).


4Q13 revenue grew 22% YoY to Bt2.27bn from both satellite and telephony business in Laos. YoY revenue growth before consolidation removal of satellite (conventional satellite/iPSTAR) and telephony was 34% (23%/14%) and 27% respectively.

Calculated from revenue and cost breakdowns, the biggest contributor to earnings growth was iPSTAR, where gross profit leapt 71% YoY to Bt355mn in 4Q13.

Although core earnings soared 84% YoY to Bt457mn, a Bt170mn unrealized FX loss (US$ loan and baht depreciation against US$) slashed 4Q13net profit to Bt287mn.

THCOM announced a 2013 DPS of Bt0.45, XD on Apr 1 and payment on Apr 23.

Comments conditions

Users are solely responsible for their comments.We reserve the right to remove any comment and revoke posting rights for any reason withou prior notice.