SABUY Continues a Rally to ฿4.12, Breaking Analysts’ TP ahead of Robust Growth Forecast

The share price of SABUY rose ฿0.16/share or 4.04% to ฿4.12/share with a trading value of 346 million baht in the morning session on Wednesday, March 17. 

 

The analyst estimated the recent partnerships and investments to reflect positively on Sabuy Technology Public Company Limited (SABUY)’s results in 2021 with key catalysts as follows:

 

1. The setup of joint venture Sabuy Exchange Co., Ltd. with Buzzebees Co., Ltd. to support the growth strategy of SABUY in related businesses and to create an ecosystem and product offerings to customers.  

 

2. The acquisition of 20% stake in A.T.P. Friend Services Co., Ltd. (Shipsmile) to expand payment points, electronic payment services, POS services, and may also include money transfer services, additional top-up points,expansion channels for vending machines business providing services to commercial banks such as deposits and withdrawals, etc. 

 

3. An improving revenue gain from entrance fees as e-Payment solutions continue to grow.  

 

4. The plan to increase the number of vending machines to 12,000 by this year, and SABUY also expected that the relocation would enhance revenue in 1Q21. 

 

KTBST Securities (KTBST) maintained a 2021 earnings forecast of 144 million baht (+42%YoY) due to 1) the gain will expand 36% YoY from a rising sales revenue, along with a recognition of entrance fee revenue, and 2) gross profit margin will surge to 40.5% in line with higher selling prices.

 

In 2020, SABUY’s total revenue was 1,512.72 million baht, increasing from a total revenue of 1,279.37 million baht in 2019, mainly as a result of the increasing in revenue from sales and services, bringing a net profit for the year 2020 to 102.06 million baht (฿0.11/share EPS).

 

Additionally, KTBST reiterated a “BUY” rating and a target price of ฿4.00/share.