The stock currently trades at a 2023 PER of 19.8x, still discounted to both its historical average of 22.1x and to the discretionary retailer mean PER of 25x.
Core earnings beat our estimate (and the street)
COM7 reported 3Q22 core earnings of Bt731m, up by 30% YoY and 18% QoQ. The number was 6% above our estimate, due to a fatter GM than assumed (and 10% above the Bloomberg consensus).
In contrast to our expectation, COM7 did not mark a one-time non-cash gain from the DOUBLE7 Co Ltd share-swap to its income statement (the gain was booked directly to equity). Hence, including the gain from Sabuy-W2 warrants of Bt146m, a Bt93m impairment for the mobile phone retailer branded BKK, and a Bt54m provision for a cash sequester tied to Phutthatham Insurance, COM7’s 3Q22 NPAT would be Bt733m, up by 28% YoY and 18% QoQ.