Equity Analysis /

Thailand (Bualuang): Technology - The tech foxes of 2Q21

  • BOL led growth in 1Q21 (up YoY and QoQ)

  • YGG to lead growth in 2Q21

  • What’s in the prices?

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Bualuang Securities
18 May 2021

Our synthetic tech ETF should resume its hot form in 2Q21. The stocks that comprise the synthetic ETF are small, but they have great potential—comparable to Leicester City, which isn’t a big soccer team, but it just won the FA Cup. BOL and YGG are the strikers, IIG the playmaker, and NETBAY the defender. We’re still waiting for HUMAN to return after an injury (expected in 2H21).

BOL led growth in 1Q21 (up YoY and QoQ)

The five firms under coverage posted aggregate 1Q21 core earnings of Bt158m, up 3% YoY but down 1% QoQ. BOL’s result was above our estimate and the 1Q21 earnings of IIG, NETBAY, and YGG were in line with our expectations. In contrast, HUMAN’s bottom-line missed our projection. BOL led core profit growth in 1Q21, up by 31% YoY and 102% QoQ. YGG was runner-up, up 60% YoY (but down 28% QoQ), followed by IIG (up 14% YoY but down 56% QoQ), and NETBAY (up 7% YoY but down 5% QoQ). HUMAN’s core profit slumped by 27% YoY and 19% QoQ.