Equity Analysis /

I&I Group PCL: IIG vs. Salesforce (and Thai peers)

  • IIG vs. Salesforce

  • IIG vs. BE8 and BBIK

  • Scope for earnings upside

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Bualuang Securities
2 June 2022

We believe IIG is in the early adoption stage. Therefore, there is still plenty of room for growth. It should beat the curve of any possible global economic recession. Its current valuation is very cheap compared with peers, and looks unreasonably low. We expect to see a valuation catch up in the near future. BUY!

IIG vs. Salesforce

Amid the challenging backdrop of macro uncertainty, US investors have shifted their focus from revenue growth to enhanced margins for US software firms. However, for Thai software firms, demand remains solid, proven by strong revenue growth. While IIG main revenue flows come variously from consulting services, Customer Relationship Management (CRM) system design & installation, and as a reseller of Salesforce software, we believe they follow different growth cycles. IIG’s revenue CAGR was 41%, during 2018-21, while Salesforce 10-years revenue CAGR was 29% (26% for 3-years revenue CAGR). We see great opportunities in Thailand because of the low penetration rate of CRM, cloud ERP and digital transformation-related applications.