Equity Analysis /

Thailand: Technology - Strong enough to withstand the storm in 1Q22

  • Strong demand to boost 1Q22 profits

  • New products to drive growth

  • Earnings momentum in 2Q22

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Bualuang Securities
5 May 2022

While many SET-listed firms will record profit slowdowns, due to the impact of COVID-19, in contrast we expect five of our Thai tech & innovation plays to report strong profit growth for 1Q22. We still recommend taking positions in these stocks, premised on powerful YoY bottom-line expansion in the years ahead.

Strong demand to boost 1Q22 profits

We expect the seven tech & innovation stocks under coverage to report aggregate 1Q22 net earnings of Bt342m, up 46% YoY and 3% QoQ. Five of the tech stocks should post YoY and QoQ core earnings growth in 1Q22. Our models point to SABUY leading growth with a 1Q22 bottom-line growth of 188% YoY and 27% QoQ, as new businesses ramp up. The runner-up should be DITTO with 1Q22 core earnings growth of 46% YoY and 82% QoQ, thanks to income from both new clients and existing customers. The second runner-up will be IIG with anticipated earnings growth of 136% YoY and 8% QoQ, a record high, due to strong demand. BOL should also post strong earnings growth of 13% YoY and 62% QoQ. YGG’s 1Q22 core earnings are likely to mark a 100% YoY jump, with rises across all business units (down 14% QoQ, due to expenses related to new businesses).