Equity Analysis /
Thailand

Sabuy Technology PCL: Invictus!

  • The SABUY metamorphosis

  • What will SABUY earnings path look like?

  • How will SABUY achieve its (very high) revenue targets?

Napon Jaisan
Napon Jaisan

Equity Research Analyst

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Bualuang Securities
28 June 2022

SABUY has been on a rollercoaster ride with its stock price recently slumping by 50% from its latest six-month high of Bt38. External factors have pushed the share price into the abyss. However, SABUY’s sound fundamental’s make it the master of its future and the captain of its own ship. Investors shouldn’t miss our Thai Corporate Day on Jul 1. The catalysts to be revealed at the event could spell a reversal of SABUY’s stock price. Who knows?

The SABUY metamorphosis

Previously, we saw SABUY as a fintech company, but it now looks more like a platform company. SABUY runs a “one-stop digital lifestyle platform” that connects service providers with users. The more services SABUY’s platform has, the more likely consumers are to use it (and a big diverse user base attracts more partners of different types). Once a critical mass builds for its services, it can leverage this mass in multiple ways. When SABUY establishes (or acquires) a new business, it can cross-sell its services in order to swiftly achieve profitability. For example, after the acquisition of TSR, SABUY could sell TSR’s products through its multiple distribution channels in the ecosystem—MLM (INDEEM), SABUY Speed shops nationwide, and condominiums & factories (SABUY’s vending machine locations).