2023-08-01 08:14:02
HoonSmart.com >> Stock “I-Tel Corporation (ITC) soared nearly 10% to close at 18.80 baht. KGI Securities sees that normal profits are not good. Reduce the value of next year to 16 baht following adjusting the profit target for the year 66-67% down 24-28% to 1,970 million baht and 2,410 million baht. New orders, price target is 30 baht, profit this year next year at 2,000 million baht -54% and 3,560 million baht +76%
On July 31, 2023, I-Tel Corporation (ITC) shares rose to a maximum of 19.40 baht before closing at 18.80 baht, rising 1.70 baht or +9.94% with a dense trading value of 498 million baht following the company announced. The performance of the 2nd quarter of 2023 has a net profit of 444.88 million baht, a 5% recovery from the first quarter, but a 67% decrease from the same period last year. by KG Securities (Thailand), even if the profit is better than expected But came from other income of 130 million baht, an increase of 287% YoY and 6% QoQ, for example, interest income from investments and interest expenses decreased to only 1.8 million baht from 5.9 million baht in the first quarter. While sales revenue dropped as expected to 3,240 million baht (-43% YoY and -10% QoQ).
Therefore, the share price target in 2024 has been reduced to 16 baht from the previous target of 21.10 baht. Reflecting a downward revision of net profit this year by 28% to 1,970 million baht (-56% YoY) and 2024 by 24% to 2,410 million baht (+23% YoY) due to a 19% reduction in revenue. This year and 21% next year, as well as reducing the gross margin this year by 1% to 20%, assuming tuna prices rose 3% to $1,950/ton, but maintained gross margin estimates at 21.0%in 2024
The downgrade to forecasts and target prices came following a meeting with management on July 27. After announcing profits for the second quarter, management views the performance in the second half of the year deteriorating due to the global economic slowdown, especially in Europe. Therefore, the sales growth target has been revised to -26 to -27%.
YoY from previously expected to be flat YoY, gross profit margin is 19-20% from 22.5-23.5% previously, and SG&A to sales ratio is 8-9% from 6-7 previously. %
The ITC announced an interim dividend of 0.25/share (posted XD on Aug. 10), representing a dividend yield of 1.5%.
Finansia Syrus Securities looks at profit in the 2nd quarter of 2023 in line with expectations. After deducting a Bt12mn gain from foreign exchange, normalized earnings were Bt433mn (+5% qq, -63% yy), in line with Thailand’s pet food exports in Q2, which dropped sharply by 5.6% qq and 24% yy due to unfinished inventory reductions for US and European customers In particular, cat food revenue fell 5.6% qq and 43% yy, while pet snack revenue dropped sharply by 32% qq and 54% yy.
However, total profitability improved from the first quarter, for example, the gross profit margin was 18.4% from 17.4% in the first quarter, despite a sharp contraction compared to the second quarter of 2022 from lower sales volume. Higher tuna costs and a shift in product mix, with the share of expensive products dropping to 44.1% in the first half of the year (vs. 49.3% in 2022).
“We were slightly positive from the analyst meeting. Management sees that major customers clearly turn back to buy and accumulate products in the third quarter by receiving orders.
Bought more than 80% of the target, in line with Thailand’s pet food exports in June, up 6.8% mm, marking two consecutive increases. In addition, the ITC has negotiated a 3-5% increase in selling prices. in the third quarter to reflect higher tuna prices. But the performance in the first half of the year was depressing. Management has adjusted revenue growth targets and gross profit margins downward. We maintain our 2023-2024 earnings forecast at Bt2,000m (-54% yy) and Bt3,560m (+76% yy). Our assumptions are still below ITC’s new target. and expects earnings to recover from the third quarter onwards. Maintain BUY recommendation. at the target price of 2024, originally at 30 baht, ”Finansia Syrus Securities stated.
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