Dao Securities maintains a “Hold” recommendation and target price at 22.00 baht based on 2024E PER at 10x (5-year average PER). The company reported normal profit (excluding FX profit) 4023 at 163 million baht (-16% YoY, + 5 % QoQ) as expected from an increase in employee and interest expenses YoY and income slightly down -1% YOY/QOQ of high household debt. and delayed payment of government work. Meanwhile, mobile revenue started to improve along with cloud revenue which continued to grow. GPM improved YoY to 7.4% share of value products (high GPM) increasing to 29% (4Q22 = 25%).
Dao Securities maintains normal profit in 2024E at 730 million baht (+20% YoY) income returns to improve +4% YoY following the change in T equipment cycle and government work returning to normal, especially 2H24E. In the short term, normal profit 1024E is estimated to return to YoY/Q0Q expansion, with positive results from the Easy e-Receipt measure and the relaunch of low-end smartphones such as Redmi Note 13.
The stock price outperformed SET +21% over the past 3 months as earnings trends ended. Meanwhile, the SET underperformed -11% in 1 month of stable operating results. Dao Securities still recommends “Hold” based on income. and normal profit in 2024E may be lower than expected due to purchasing power which will still slow down in 1H24E following economic conditions, GDP and low inflation. Including employee expenses which continue to increase.
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