Equity Analysis /
Thailand

Business Online PCL: Big data will be a recession hero

  • Very strong competitive moat

  • Potential of cross-sell/upsell—a big scope for upside

  • TPX features to take off next year

Napon Jaisan
Napon Jaisan

Equity Research Analyst

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Bualuang Securities
22 December 2022

We hosted a virtual roadshow for domestic investors last Wednesday, at which we saw significant expansion opportunities for BOL, riding the big data wave.  It should beat the curve of a possible global economic recession. Both volume and value will drive growth. BUY!

Very strong competitive moat

BOL currently has about 1,600 customers (average annual revenue per head of Bt80k vs. the cheapest package of Bt58k). However, the penetration rate is still low (only 5% of companies in Thailand with annual revenue exceeding Bt200m). Its retention rate is more than 100% (with high usage rates for existing clients). We don’t see any substantial potential local competitors. The Department of Business Development (BOL’s major source of data) offers information services for free, but only standard information. Thus, we don’t see the DBD as a real competitor, but we do see it as an entry barrier for aspiring competitors. Moreover, DBD seems to be a good introduction to BOL’s paid-for services as users typically seek data analytics after they have used DBD’s free version.