Last year, DITTO was one of our favorite tech plays. It remains one of our preferred stocks, due to its long-term growth potential. DITTO’s stock price has been falling, already hitting our previous target price of Bt50. We see its strong earnings flow in 2Q-4Q22 and good news future flows (new projects) as catalysts for its stock price uptrend cycle. For now, a reasonable PER for us is about 2SD above its long-term mean (a mean of tech space PER), which will translate into a DITTO’s stock price of Bt80.
2Q22 net profit was in line with our expectation
DITTO posted a bottom-line of Bt63m for 2Q22, up 65% YoY and 8% QoQ (despite fewer working days QoQ). Excluding a net-of-tax gain from disposal and revaluation on short-term investments and an extra gain from hedging, core earnings would be Bt58m, up 58% YoY but down 10% QoQ. Net profit was in line with our estimate.