ILINK Breaks Analyst’s Target Price after Surging 13% in Anticipation of 2021 NP Growth

ILINK surged 13% to Bt6.10, breaking CNS' target price as investors speculated on high profit growth in 2021.

The share price of Interlink Communication Public Company Limited (ILNK) rose ฿0.70/share or 12.96% to ฿6.10/share with a trading value of 120 million baht.


Capital Nomura Securities (CNS) has given a “BUY” recommendation on ILINK with a target price at ฿5.80/share, expecting the company to record a profit growth by 34% YoY and 639% QoQ to 82 million baht in 1Q21, excluding FX.

The normal business is expected to recover from losses in 1Q20 and 4Q20 as the EPC business has no impact on CC3 incremental costs after the end of 2020, leading to a better gross margin of 20.8%, improved from 17.3% in 1Q20 and 7.7% in 4Q20.

CNS projected total revenue to increase 10% YoY and 3% QoQ from cable distribution business And telecom business. As for EPC works, CNS expected ILINK to record higher revenue compared to the previous quarter.

CNS revised up net profit from 2021-2022 to 47% and 18%, respectively, to be in line with the new revenue forecast of ITEL and higher-than-expected backlog from 2020. In addition, CNS expected ILINK to acquire new projects in 2021 for a total project value of 650 million baht, increased from its previous estimate of 300 million baht.