Equity Analysis /

Thailand: Technology - BUY two now, BUY three later

  • Aggregate 3Q22 net earnings to rise 107% YoY

  • Three firms to report >30% core earnings growth YoY

  • Earnings momentum in 4Q22

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Bualuang Securities
4 November 2022

We expect DITTO and SABUY to report strong net profit growth for 3Q22 (buy now), while YGG, IIG and HUMAN firms will report weak 3Q22 earnings but should rebound strongly in 4Q22 (a good time to BUY would be after their announcements of 3Q22 results).

Aggregate 3Q22 net earnings to rise 107% YoY

We expect the seven tech & innovation stocks under coverage to report aggregate 3Q22 net earnings of Bt641m, up 107% YoY and 1% QoQ. HUMAN will book the impairment of investment in CXA (US$1.1m) in the quarter. IIG is likely to book extra expenses related to the acquisition of Lansing (Bt3-4m). Given SABUY’s business strategy to keep investing in new firms, it should continue booking investment gains in 3Q22 which will top up some additional operational profits. We expect SABUY to lead earnings growth in 3Q22 (up 568% YoY and 5% QoQ to Bt374m).