CS Loxinfo

CS Loxinfo Plc (CSL)

2010-2012A shows price rose 15-29% over Jun-Jul before announcing
interim dividend

Expect 3% yield on 1H13F, 6.7% for full-year
2Q13F to remain strong, still look for 26% earnings growth in 2013F
Maintain Buy and Bt16 TP: generous dividend yield and high growth

Jun-Jul share price normally rises before interim DPS. CSL has consistently paid a
generous dividend twice a year and in anticipation, share price will rise nicely before
the interim dividend announcement. In 2010 share price rose by 29%, in 2011 by 15%
and in 2012 by 21% over the two months of June-July, ahead of 1H dividend yields of
7%, 5% and 4% respectively, and we expect this year to be no exception.
Expect 3% yield on 1H13F. For 1H13F, we expect CSL to announce a Bt0.37 interim
dividend at the same time it releases 2Q13 results in August. This implies 3% yield at
current share price. We estimate 6.7% yield for 2013F.
Look for 26% earnings growth in 2013F. We maintain our forecast core earnings
growth of an impressive 26% to Bt500mn in 2013F, backed by steady growth in its
content business and internet data center (IDC) and also helped by lower loss from its
yellow pages business. Its cloud service for ADVANC’s 3G customers is still in early
stages; more details are expected late in the year, so we leave this as upside risk for
2014F.
Maintain Buy and Bt16 TP. Given the upcoming interim dividend, the 6.7% generous
dividend yield for 2013F, the expectation of outstanding earnings growth of 26% in
2013F and the 2014F earnings upside from its cloud service for ADVANC, we maintain
Buy and Bt16 DCF-derived TP