Equity Analysis /
Thailand

Netbay PCL: Development of iBox could spell the end of down cycle

  • 2Q22 to recover QoQ

  • The jumpstart of iBOX in 2022

  • A new growth phase to kick off in 2H22

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Bualuang Securities
22 June 2022

We believe that NETBAY earnings have already bottomed out in 1Q22 and will jump into a new growth phase in 2H22, led by its new service—iBOX. Its valuation should be re-rated during a cyclical uptrend. Innovation will be key to accelerating NETBAY’s profit growth profile. Our call shifted from HOLD to BUY.

2Q22 to recover QoQ

Lockdowns of Chinese cities to contain the spread of COVID-19 have been snarling imports and exports. Since some of NETBAY’s revenue depends on its Customs Department platform, therefore, NETBAY’s earnings will be pressured by lower international trading activities in 2Q22. However, the firm doesn’t rely solely on business tied to imports and exports. It has other platforms that continue to perform very well. There are many users of their wide range of services.