A System Integrator to Hang Your Hat On

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A System Integrator to Hang Your Hat On

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Watch the video with Andrew Stotz or read a summary of the World Class Benchmarking on Advanced Information Technology PCL.



Background

Advanced Information Technology Public Company Limited is a developer and provider of computer systems and computer communication systems in Thailand.

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AIT provides services to both state-owned enterprises and private companies in the form of billing and charging systems, enterprise resource planning and customer relationship management systems.

AIT provides services to both state-owned enterprises and private companies

Business Description

AIT develops the tools to facilitate everyday life inside companies and institutions through more effective planning and management.

Foreign observers might categorize AIT as a System Integrator (SI). The company designs system solutions, including hardware, software, applications and computer network equipment to provide network services.

Two big #telecom players in #Thailand, CAT PCL and TOT PCL, use AIT network services

The core business of AIT is the design, development and servicing of network infrastructure based on client demand. Those include management information systems (MIS), transportation systems, geographic information systems (GIS), operational support systems (OSS), billing and charging systems, enterprise resource planning (ERP) and customer relationship management (CRM) systems among others.

Two big telecom players in Thailand, CAT PCL and TOT PCL, use AIT network services and account for 25% and 14% of the company’s revenue, respectively, at last check. The remainder comes from state enterprises, private companies and educational institutions.

Leadership

Chairman of the Board Thana Chaiprasit has been with the company since 2003. He owns 1% of AIT’s shares and is not related to the company’s management. Beside AIT, Chaiprasit has held the chairman position for both Siam Glass Company and Thanarom.

President Siripong Oontornpan has held his present position for 24 years

President Siripong Oontornpan has held his present position for 24 years. Together with his family, he holds 13% of shares.

Over the last 5 years, AIT has remained in the top 30% of firms in its sector, based on our World Class Benchmarking.

World Class Benchmarking

Profitable Growth fell to a lower rank #3 in the trailing 12 months for the first time in 4 years.

However, AIT has remained highly ranked for 5 consecutive years. AIT ranks among the best 351 of 1,170 medium information technology companies worldwide.

Profitability has been in the green since 2012 and is the main driver of the high Profitable Growth numbers. Growth, however, remained the same at #7. For most of the last 5 years, Growth has been below average for the sector.

Profitable Growth fell to a lower rank of 3 for the first time in 4 years

Asset utilization has fallen since 2014 but remains above average. Sales growth improved to #6 from #10, but Margin change dropped to #8.

That left side of the triangle has really supported AIT’s ranking all along.


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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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In 1992 Dr. Andrew Stotz, CFA, left a management career at Pepsi-Cola in California to teach finance in Thailand. In 1993, he found his life calling as a financial analyst, a job for which he was eventually voted #1 in Thailand. In the second half of his 20-year career in investment banking, Dr. Stotz was a Head of Research, leading teams of financial analysts. He served as a two-term president of CFA Society Thailand and now runs his firm, A. Stotz Investment Research, which provides research and tools for institutions and high-net-worth investors and helps CEOs make their companies financially world class.
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