Leading telecommunications provider Advanced Info Service Public Company Limited (SET: ADVANC) has seen its stock recommendation upgraded from “Hold” to “Buy” by Kasikorn Securities with a year-end 2025 target price of Bt306.06, based on a discounted cash flow (DCF) model.
This strategic upgrade comes as the current share price, at Bt274.00 as of June 23, 2025, is deemed suitable for investors to re-accumulate shares despite recent market volatility.
Kasikorn Securities highlights ADVANC’s advantageous position in English Premier League (EPL) content, noting that their content costs for the current season are expected to be significantly lower than TRUE’s previous season’s costs, making the company a better player in this area.
Furthermore, the company is diversifying beyond traditional telecom services, exploring new “S-Curves” in areas like large data centres and virtual banking, alongside a collaboration with National Telecom (NT). These new ventures are anticipated to carry limited financial risk and are not expected to negatively impact ADVANC’s capital management.
Key factors supporting the valuation upgrade include more proactive capital management, a rebalancing of mid-band spectrum market share with TRUE, and effective content package bundling strategies that help increase average revenue per user (ARPU).
While not considered the ideal choice for the upcoming spectrum auction due to capital constraints from roaming fees paid to NT, ADVANC is viewed as a safer investment choice amidst increasing market volatility, primarily due to its low net debt and high dividend yield.
Potential downside risks include:
- Lower-than-anticipated EPL subscriber numbers before the new season.
- Higher losses from new business ventures than expected.
- More intense competition in the spectrum auction than anticipated.
Nevertheless, the high dividend payout and successful content bundling strategy are highlighted as positive catalysts for re-evaluation.
