Company Research March 3, 2020 TRUE CORPORATION BUY (TRUE TB/ TRUE.BK) Target price Bt4.90 (+49.4%) Price Bt3.28 Sharp correction is unjustified The sharp correction in the share price over the past six months suggest the negatives have been priced-in, including the core loss in 4Q19. We also expect TRUE to book losses this year, but the magnitude would be shallower than in 2019, underpinned by rising revenue. This could be a share price Phatipak NAVAWATANA catalyst. We continue to recommend a BUY rating with a TP of Bt4.9. Fundamental investment analyst on securities +662 659 7000 ext 5003 Minimal guidance for 2020
[email protected] At the analyst briefing yesterday, TRUE presented a recap of 4Q19 performance and earnings prospects for FY20 following its winning bids for 5G spectra in mid- February. We left the meeting with a neutral view as the message is in line with our view. The key takeaways were as follows: (1) TRUE gave a rough guidance Key data Unit for revenue, earnings and capex trend in 2020. Following successful marketing 12M high/ low (Bt) 6.8/ 3.2 strategies for both mobile and FBB implemented in 4Q19, the firm expects Market cap (Btm/ USDm) 109,448/ 3,484 services revenue to grow faster this year than +3.9% in 2019. TRUE also expects 3M avg. daily turnover (Btm/ USDm) 389.2/ 12.7 costs to rise at a slower pace than revenue because cost control remains a Free float (%) 67.0 Issued shares (m shares) 33,368 priority.