The MORE case and the transaction tax introduction have delivered an unavoidable blow to mid-small stocks, including our tiny tech firms. But with no affect on their fundamentals, we view the recent declines as an opportunity to find value in these growth stocks.
Earnings momentum in 4Q22
All tech firms will post strong earnings growth for 4Q22 (up YoY and QoQ), we anticipate. We expect SABUY to report strong earnings growth in 4Q22, driven by the consolidation of TSR, Buzzebees, iSoftel, SABUY Allianz and Love leasing. Three losers in 3Q22 will transform into the winners in 4Q22—HUMAN, IIG and YGG. HUMAN booked huge extra losses during 9M22. However, we don’t expect to see any extra items in 4Q22. HUMAN’s quarterly earnings will set a new base of Bt60-80m/quarter in 4Q22-2023 vs. pre-COVID level of Bt30-50m/quarter.