August 11, 2021
24
“Kasikorn Securities” reveals that GULF is preparing to buy shares of INTUCH with an increase of not more than 50%, at a price of not more than 65.00 baht per share, preparing to send representatives to sit for 4 directors, and study the plan to increase the dividend to 100% from the current 75%. Da” aims to increase the profit target for year 64 from the previous projection of 9.7 billion – reasonable price
Mr. Phisut Ngamvichitwong, Senior Director The Securities Analysis Department of Kasikorn Securities Public Company Limited revealed after the Analyst Meeting of Gulf Energy Development Public Company Limited (GULF) that GULF Informed that there is a plan to buy more shares of Intouch Holdings Plc. (INTUCH), but not more than 50%, at a price of not more than 65 baht per share in the next 1 year from the current shareholding proportion at 42.25 % will be notified via the Stock Exchange of Thailand again when buying up to 45%
In addition, GULF is studying the increase of INTUCH’s dividend payment policy from 75% to 100%, including studying the establishment of an infrastructure fund. (Infrastructure Fund) with Advanced Info Service Public Company Limited (ADVANC) selling assets to the fund, etc. In this regard, the Company is preparing to propose to INTUCH’s shareholders to appoint 4 directors to take part in ADVANC management. 2-3 people
The Company plans to issue debentures amounting to 20 billion baht to use the proceeds from the fundraising to repay short-term borrowings that were purchased. INTUCH and use to expand business
Mr. Phisut said that the company recommends buying GULF because it is supported by investment in INTUCH shares, including many new projects under development. This will support the stability of long-term growth. ADVANC recommends buying from the business expansion (Synergy) that will be derived from the long-term holding of GULF. The price is reasonable at 207.24 baht per share, but there is an opportunity to increase ( upside) and many more
While INTUCH is priced at 67.69 baht per share, the share price is expected to not be as noticeable as ADVANC, but has limited downside risk as it is expected that GULF will gradually buy shares during the price decline near the 60 baht area. share
Mr. Nattapon Kamthakrua, Director of Investment Analysis Department of Yuanta Securities (Thailand) said that the research department is preparing to raise the forecast for GULF’s 2021 net profit from the original expectation of 9.7 billion baht and increase the price. Appropriate, another 2-4 baht from 40.75 baht per share to reflect the recognition of profit sharing from INTUCH investment, which was previously recognized as a dividend. % from now holding 42.25% but not more than 50% which is positive for income
In this regard, GULF stated that ADVANC is studying the plan to establish an infrastructure fund. to bring assets to raise funds in the said fund and recognize the income back as a dividend This will enable the parent company INTUCH to be able to pay dividends back to GULF and use the proceeds to repay the borrowed debt to buy INTUCH shares. Singtel, the major shareholder of INTUCH and ADVANC, agree with this point.
However, the research department recommends ADVANC as a top stock because it has the highest upside. According to analysts, the price is reasonable at 220 baht per share. In addition, GULF has a plan to cross assets with ADVANC, which will result in new business benefits. to be added, such as the port business and utilities business. This will help support GULF’s income, even if there is an opportunity to raise the price appropriately. But the current price level has quite a bit of upside left.
.
