CS Loxinfo

CS Loxinfo Plc
2Q13F: +17% YoY to Bt116mn. We expect core earnings of Bt116mn in 2Q13F. Details:
- YoY growth from: 1) 15% YoY revenue growth in the internet segment to
Bt521mn, especially from data center (IDC) and IT-project businesses and
2) an expected 10% YoY revenue growth in content service to Bt160mn, thanks
to horoscope and news content.
- QoQ slip mainly because the directory business continues in the red. We
believe the monthly revenue from yellow pages directory fell by almost 15% in
May 2013 (the first month for the 2013 yellow pages). Popularity has shifted
from printing to online; though CSL is working to build up its online business,
it is still very small. If it cannot stop the bleeding from this business, we
believe it could abandon it, as it did when it closed down Watta (printed
classified) last year.
1H13F, 2013F dividend yields of 2.95%, 5.9%. We expect CSL to pay an 1H13F interim
DPS of Bt0.36, 81% payout, or 2.95% of current share price. For full-year 2013, we
forecast a DPS of Bt0.72, offering generous yield of 5.9%, the highest in this sector.
Maintain Buy and Bt16 TP. With attractive dividend yield, plus the expected 26%
earnings growth in 2013F and upside potential from upcoming cloud service for
ADVANC 3G (could be next year), we maintain Buy and Bt16 DCF-derived TP