DTAC disappointing third-quarter earnings see share price drop, analysts rate buy

Total Access Communication (DTAC), Thailand’s third-largest mobile carrier, saw its share price drop over the past week after posting poor third-quarter earnings.

Analysts on Wednesday recommended buying the stock on the dip as recovery was likely.

DTAC reported 832 million baht worth of net profit in 2021’s third quarter this week, missing market estimates. The results were down 42 per cent year-on-year. 

The carrier’s share price fell by 9 per cent in the past 10 days. DTAC traded at 38.75 baht in the morning session, slightly down from its prior closing.

The drop in earnings resulted from the reemergence of Covid-19 that induced “softer consumer spending power” and “closure of telco shops for over one month,” the company said.

Maria Lapiz, head of institutional research at Maybank Kim Eng Thailand, said DTAC is expected to see improvement in the fourth quarter due to mobile outlets resuming their services.

“The border reopening also brightens the outlook; pre- Covid DTAC had a high market share in tourists and migrant laborers’ SIM cards.” 

Lapiz rated ‘Buy’ on DTAC with a 12-month target price at 45.10 baht.

However, Maybank reduced the 2021 full-year earnings forecast for DTAC from 5.6 billion baht to 4.9 billion baht. 

Phatipak Navawatana, an analyst at Krungsri, also rated ‘Buy’ on DTAC with a 48 baht target price, saying the third quarter of 2021 would be the weakest quarter this year.

Stock Price Info

Stock Fundamental

Peer Comparison

Stock Price Chart

COVID-19

Thai government pushes booster shots as Omicron worries fuel response

The Thai government is encouraging Thais in at-risk categories to seek out a third booster shot as a new...

Latest article