Equity Analysis /
Thailand

Thai: Technology - The shield (value) may be as important as the sword (growth)

  • Earnings momentum in 4Q22

  • Who will be the growth leader in 2023?

  • Growth and value can walk together

Napon Jaisan
Napon Jaisan

Equity Research Analyst

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Bualuang Securities
7 December 2022

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.