ITEL Gains 9% on Expected 40% Earnings Growth in 2Q—Moving to SET in Sep.

The share price of Interlink Telecom Public Company Limited (ITEL) rose ฿0.36/share or 8.57% to ฿4.56/share in the morning session on Friday, July 30, with a trading value of 682 million baht.

Capital Nomura Securities (CNS) forecasts that ITEL’s net profit will expand by 40% in 2021 as a result of its three core businesses (data service, data center and network installation service). Currently, the company has a backlog of 4.3 billion baht, of which about 1.4-1.7 billion baht will be generated to ITEL this year, while margins remain healthy.

Earnings are predicted to improve year over year but remain flat quarter over quarter in 2Q21. ITEL plans to bid on two additional security projects in June: USO-TOT and Course Online. This will result in an increase in ITEL’s revenue.

ITEL is still worth speculating on a 16.7x PER 21F, which is not overpriced in comparison to a 24% 3-year forward CAGR. ITEL is predicted to grow both in 2Q and 2021, as it is constantly in investors’ eyes.

Mr. Nuttanai Anuntarumporn, Chief Executive Officer of ITEL, stated that the company anticipates the transition from mai to SET to be completed in mid-August 2021, and that the stock would begin trading in SET in mid-September or around September 14, 2021. Listing on SET will allow the company to accomplish the sales target of 5,000 billion baht by 2025.