Equity Analysis /
Thailand

Business Online PCL: Without big data, companies are deaf and blind

  • Business information services led growth in 1H22

  • 1Q>2Q>3Q>4Q

  • New features—a big move

Napon Jaisan
Napon Jaisan

Equity Research Analyst

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Bualuang Securities
26 August 2022

We see meaningful future expansion opportunities for BOL, riding the big data wave. Both volume (new clients) and value (new services) will drive growth. In the interim, we expect the firm to report YoY and QoQ core earnings growth for 3Q-4Q22. BUY!

Business information services led growth in 1H22

BOL’s 1H22 sales didn’t rise significantly, due to Thailand’s COVID-19 outbreak (staff were unable to work on-site which effected some projects, particularly those in risk management). Therefore, its 1H22 revenue rose only 8%, but earnings increased 16% YoY. Disaggregated by businesses, service income from providing business information rose 18% YoY while risk management service income plummeted 51% YoY in 1H22. Despite this middling revenue growth in 1H22, the robust jump of business information income was impressive. During the COVID pandemic in 2020-21, risk management projects played a major role in supporting BOL’s revenue. However, risk management projects have slimmer margins (project-based revenue) than business information services (mostly recurring revenue).