SONIC Soars 8% to All-Time High, Expecting 20% Revenue Growth in 2021

The share price of Sonic Interfreight Public Company Limited (SONIC) rose ฿0.24/share or 7.74% to ฿3.34/share as of 15:20 local time in Thailand, with a trading value of 131 million baht, marking an all-time high since entered the market on October 19, 2019. 

 

Mr. Santisuk Kosiarpanant, Chief Executive Officer of SONIC, revealed that the company expected revenue in 2021 to grow 20% compared to a revenue of 1,352 million baht in 2020, estimating about 60% of total revenue this year would come from sea freight service, 35% from transportation service and 5% from air freight service.

For the year 2021, SONIC planned a transportation service expansion through a logistics leasing business. SONIC aimed to increase the number of autos for transportation services to 400-500 from the current 145-150 vehicles (95 cars owned by the company, while others are owned by subcontractors) by providing loan and mortgage to subcontractor, this strategy will reduce the burden of the company regarding the auto maintenance and SONIC is still able to control the quality of cars and transport.

 

Asia Wealth Securities (AWS) has given a “BUY” recommendation on SONIC with a target price of ฿3.50/share (PER multiples to 29.0x) based on the assumption of right adjustment of warrant exercise. 

 

2021 is logistics’ sunrise year in line with global economic recovery and shipping container shortage. Therefore, AWS expected SONIC’s earnings this year to grow 39% YoY to 83 million baht thanks to both logistics and leasing businesses.