Samart Corporation

Samart Corporation Plc (SAMART)

Active in adding new businesses. SAMART plans to expand its scope of business
into two new areas: 1) solutions service for utilities projects, moving away from a
single focus on ICT projects, with plans to acquire one project in this field in 4Q12F
and 2) digital TV via applying for a network provider license in 4Q12F. SAMART’s
revenue mix should become more broadly based from 2013F onwards.

Big ICT projects ahead. Its ICT project business under SAMTEL continues to have
large opportunities lying in big projects for state enterprises TOT and AOT. TOT has
already approved a 3G phase II+LTE project to add 6.7K base stations to bring the
total to 12K. Based on the Bt16bn budgeted for the 5,320 Phase 1 base stations, we
estimate the budget for phase II to be above Bt20bn – the cutoff level at which it
must get approval from NESDB and the cabinet before it can arrange an auction for
the network rollout, which we see as possible in early 2013. AOT is expected to
arrange an auction for its Advanced Passenger Processing Service system with an
estimated budget of Bt13bn in 4Q12F.

Raise 2013F by 2%. SAMTEL has already completed the acquisition of Portal Net,
which provides the outsourced IT service for the Provincial Electricity Authority or PEA.
Adding this to our forecast raises our 2013F earnings by 2% to Bt1bn.

Maintain Buy with new mid-2013 TP of Bt13. We raise SAMART TP using SOTP
to Bt13 (rounded) from Bt11 to incorporate: 1) the raise in SAMTEL TP to Bt19 from
Bt17 and 2) a reduction in the discount applied to 11% from 22%, which is its +1SD
five-year historical average, to accommodate its concrete plans to expand into new
areas. Looking at upcoming flows of new projects and business expansion, we
reiterate Buy.