Analyst Expects DTAC to Pay an Interim Dividend of ฿0.75, Recomm. “BUY” with a TP at ฿50

Total Access Communication Public Company Limited (DTAC) is expected to pay an interim dividend payment of ฿0.75/share backed by a dividend yield of 2%, despite the analyst has foreseed a 2Q20 core profit to shrink by 36% to ฿1,084 million as the operation throughout quarter was affected by the Covid-19 outbreak. Analyst gives a “BUY” recommendation with a target price of ฿50/share.

 

Capital Nomura Securities expected DTAC’s 2Q20 net profit at ฿1,084 million (-36%YoY, -28%QoQ) as the operation was impacted by lockdowns, tourism standstill and lower spending power and estimated DTAC to report a total revenue in 2Q20 of ฿18,789 million (7% YoY, 6%QoQ) affected by the Covid-19 pandemic as well.

 

DTAC also indirectly hit by participating the campaign of offering a free additional 10GB max speed internet for 30 days together with the National Broadcasting and Telecommunications Commission (NBTC).

 

Service revenue would drop by 4%YoY to ฿14,539 million (-5%QoQ), pressured by lockdown measures that were implement nationwide. Department stores were forced to shut down  at least one and a half months during 2Q. Meanwhile, mobile sales is expected to decrease 37%YoY and 25%QoQ to ฿1,300 million.