Equity Analysis /

Com7 PCL: Market share first!

  • Set to mark a new record core profit for 4Q22

  • “Market share first” strategy

  • Forecast 2022-24 core EPS CAGR of 18%, driven by sales

Bualuang Securities
21 October 2022

COM7’s “market share first” strategy, successful track record, and support operations (customer data, online sales & delivery, and HP services) should enable it to sustain outstanding profit growth over the years ahead.

Set to mark a new record core profit for 4Q22

The launch of iPhone 14 in Thailand (Figure 1) and a low 3Q21 base will make for strong 3Q22 earnings growth, followed by a new record for 4Q22, according to our model. Stripping out a Bt1bn non-cash post-tax extra gain from selling 40% of Double7 Co Ltd to SABUY in 3Q22, we expect COM7 to report a core profit for the quarter of Bt675m, up by 21% YoY and 9% QoQ, driven by SSSG of 32%. And with a lot more iPhone 14 sales to be booked, Oct-Dec 2022 (iPhone 14 was launched in Thailand only in mid-Sept), we anticipate record earnings for 4Q22. Our 2022 COM7 core profit forecast is Bt3,049m, up 17% YoY and a new high, driven by a solid demand recovery for mobile phones and aggressive business expansion.