Analyst Expects INTUCH 1H20 Dividend at ฿1.10, Forecasting ฿11.3Bn of Profit at Year-End

Intouch Holdings Public Company Limited (INTUCH) is anticipated to distribute a dividend payout for the first half 2020 of ฿1.10/share even though the 2Q20 profit is likely to post a 17% drop to ฿2,450 million after booking lower revenue share from ADVANC-THCOM, resulted in 1H20 profit to stand at ฿5,190 million. Analyst has given a “BUY” recommendation with a target price of ฿65/share as expects INTUCH to rebound in 2H20 with a profit of ฿11,333 million, growing by 2%YoY. While GULF, a 5.0718% shareholder of INTUCH, is expected to collect ฿178 milion in dividend. 

 

Capital Nomura Securities estimated INTUCH to report 2Q20 net profit of ฿2,450 million (-17%YoY, -11%QoQ), pressuring by a lower revenue share of subsidiaries, Advanced Info Service Public Company Limited (ADVANC) and Thaicom Public Company Limited (THCOM)

 

In case, if the 2Q20 profit result is as expected, it will enhance the 1H20 net profit reaching to ฿5,190 million (-11%YoY), analyst thus forecasted a dividend payment of ฿1.10/share. 

 

Capital Nomura expected INTUCH’s revenue to rebound in 2H20, supporting by lockdown relaxations and the rolling out of stimulus and relief packages on tourism and consumer. As well as the upcoming of AIS 5G network launching in 2H20. Therefore, expecting mobile service revenue to revive in 2Q20 and to grow in 4Q20 when compared to a year earlier.

 

Capital Nomura has maintained its full-year net profit forecast of INTUCH for 2020 at ฿11,333 million (+2%YoY) and recommended “BUY” with a target point of ฿65/share.

 

In addition, analyst also expected if INTUCH pay a dividend at ฿1.10/share, Gulf Energy Development Public Company Limited (GULF), in which holds a total 5.0718% of INTUCH’s shares, would receive the dividend approx. ฿178.83 million