Equity Analysis /

Thailand (Bualuang): Technology - The bad news is the good news

  • 1Q22 earnings checks

  • Growth winners and growth potential

  • Valuation catch-up plays

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Bualuang Securities
30 March 2022

The bad news? Tech stocks have been slammed recently. The good news? Tech stocks have been slammed recently—meaning if you’re a buyer, opportunities have opened to take positions. The quest for investors is to find the possible future winners of the next rally. The NASDAQ’s rebound and the sudden turnaround in Chinese tech stocks last week are fueling optimism that the worst of the year-long rout may finally be over.

1Q22 earnings checks

We expect SABUY, YGG, and DITTO to report strong YoY and QoQ profit growth for 1Q22. For IIG, HUMAN, NETBAY and BOL, we antici-pate YoY earnings rises but QoQ drops, due to seasonality. Many projects that were put on ice (when COVID-19 hit) resumed in 4Q21, particularly among big enterprises. Managers came to realize the importance of digital transformation. Firms are seeking to cut costs by using technology and outsourcing non-core activities, which is expand-ing demand for the services of tech firms.