Equity Analysis /
Thailand

Netbay PCL: Grow now, reap later

  • 3Q22 to recover QoQ

  • The jumpstart of iBOX in 2H22

  • A new growth phase to kick off in 4Q22

Napon Jaisan
Napon Jaisan

Equity Research Analyst

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Bualuang Securities
6 September 2022

We believe that NETBAY earnings have bottomed out in 1H22 and will jump into a new growth phase in 4Q22, led by its new service—iBOX. Its valuation should be re-rated during the cyclical uptrend. Innovation will be key to accelerating NETBAY’s profit growth profile. We think it’s a good time to accumulate.

3Q22 to recover QoQ

Lockdowns of Chinese cities to contain the spread of COVID-19 have been snarling imports and exports and since some of NETBAY’s revenue depends on its Customs Department platform, NETBAY’s earnings were pressured by lower international trading activities in 2Q22. However, the situation should gradually improve in 3Q22. Moreover, the firm doesn’t rely solely on business tied to trade but has other platforms that continue to perform very well. There are many users of their wide range of services.