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Intouch Holdings Pcl (SET:INTUCH), formerly Shin Corporation Pcl, is a Thailand-based company engaged in investments in satellite, Internet, telecommunications, media, IT and digital content. The company owns a 40.45% stake in Advanced Info Services Plc (SET:ADVANC) and a 41.14% stake in Thaicom Plc (SET:THCOM). In 2012, the company founded InVent, a corporate venture capital (CVC), focusing its investments in technology companies in late-seed or expansion stages in Thailand and Southeast Asia.
The company said on February 17 that its full-year 2015 revenues were 12.67 billion baht, missing the 13.90 billion baht consensus estimate of 10 analysts, according to the Financial Times. Intouch Holdings posted full-year 2015 earnings of 5.01 baht per share, missing the 5.03 baht per share consensus estimate of 13 analysts. INTUCH reported a dividend of 4.63 baht a share in 2015, which represents a 5.47% increase from 2014. The next earnings announcement from INTUCH is expected on May 13.
In early January, Intouch and Korea’s Hyundai Home Shopping Network Corporation announced a 500 million baht joint venture to create a 24-hour TV home shopping network, HIGH Shopping Co. Ltd, in Thailand. Intouch Media has invested 255 million baht for a shareholding of 51% and Hyundai Home Shopping invested the remaining amount for a shareholding of 49%. HIGH Shopping has a sales target of 3 billion baht for its third-year of operation and 4.5 billion baht in its fifth-year.
In late March, the shares of INTUCH were unable to break the upper trendline resistance of the descending broadening chart pattern at the 65 baht level and crashed to the 52 baht level, along with the telecom sector after the National Broadcasting and Telecommunications Commission of Thailand said a new auction round for the 900 MHz spectrum license will take place on June 24, with the starting price at 75.65 billion baht. The stock could go nowhere, as investors can’t decide whether to step in or stay out until the auction is over.
As of April 29, 2016, the consensus forecast amongst 16 investment analysts polled by the Financial Times advises investors that the company will Outperform the market, with the median 12-month price target of 70 baht per share.
Disclosure: Long position in ADVANC and no recommendation. |
