Still “SABUY” after Level 3 Trading Alert?

The word “sabuy” in Thai means chill, comfortable or with ease in English. That is the meaning of Sabuy Technology Public Company Limited (SABUY), which mainly focuses on providing electronics payment services, top-up kiosks and distributes the machine by cash and installment selling plans to customers.

 

The incident on its first trading day in the Market of Alternative Investment (mai) is still implanted on the back of some investors’ heads as it was not so “sabuy” as it should have been.

 

The company priced its IPO at Bt2.50 per share, but due to some reasons, the share price on the first trading day (11 Nov. 2020)plunged heavily and closed at Bt1.70, representing a decrease of Bt0.80 per share or 47%.

 

Since the first trading day, the securities were traded below Bt2.0 for a few months and finally emerged above the Bt2.0 level around mid February 2021. From that point onward, SABUY never looked back.

SABUY has gained Bt4.20 or 168% from its IPO price and closed at Bt6.70 per share as of May 20, 2021. It was a surprise comeback, but also at a cost of three trading alerts from the Stock Exchange of Thailand (SET).

 

Nevertheless, the path up to this point was quite rough for SABUY.

Due to an unusual movement of prices and trading volumes of SABUY, SET issued its first trading alert on March 26, 2021, with a Level 1: Cash Balance measure. On that day, the share price of SABUY rose from Bt4.06 to Bt4.98, representing a gain of Bt0.92 per share of 22.66% with a trading volume of 221 million shares.

On the next trading day, the share price of SABUY fell 7.63% with a trading volume of 45 million shares.

 

However, the cash balance measure was unable to stop the red-hot bull. SABUY received its second trading alert with a Level 2: Excluded from credit limit and Cash Balance on April 1, 2021, after gaining Bt0.88 per share or 19.05% to close at Bt5.50 per share with a trading volume of 43 million shares.

This time, the share price rose 1.82% on the next trading day with a volume of 21 million shares.

 

Then the company received the third trading alert on May 18, 2021, with the highest and strictest measure, Level 3:  Prohibit Net settlement, Excluded from credit limit and Cash Balance after the share price gained Bt1.10 per share or 18.64% and closed at Bt7.00 per share with a trading volume of 67 million shares.

The share price plunged on the next trading day by 4.29% with a trading volume of 8 million shares.

 

Currently, SABUY joined the same rank as Xspring Capital Public Company Limited (XPG) or formerly known as KT Zmico.

 

Whether SABUY would be “sabuy” after the Level 3, that is something to be monitored closely. However, it is clear that the previous two measures have proven to be ineffective against SABUY as the share prices continued to rise with a few days of plummet after the announcement of trading alert.

 

The 1Q21 earnings of SABUY was not bad at all either. SABUY’s net profit in 1Q21 was 33.7 million baht, an increase of 14.5% from the same period last year. The  increase was mainly due to the growth in gross profit together with enhanced efficiency in cost management for administrative expenses.

 

Let’s see what comes next.