COM7 Continues a Rally, Analyst Expects 2021 Earnings to Enjoy Rising Demand from WFH

The share price of COM7 Public Company Limited (COM7) rose ฿2.00/share or 2.76% to ฿74.50/share as of 14:56 local time in Thailand, with a trading value of 1,451 million baht.

 

KTBST Securities (KTBST) reiterated a “BUY” rating on COM7 but raised target price to ฿85.00/share from ฿60.00/share and PER multiples to 42x (+3 SD above its 5-yr average) from 40x (+2.5 SD), as KTBST roll forward its valuation to 2022E base. 1Q21E core profit is forecasted to grow +61% YoY but to decline -17% QoQ to 463 million baht as 1) total revenue is estimated to rise +29% YoY given a launch of iPhone 12 in October, and 2) COM7 is expected to enjoy rising demand from the recent opening of 100 stores, a launch of new Xiaomi flagship model and the “work from home” policy. 

 

KTBST raised its core profit forecast by 6% to 1.89 billion baht (+31% YoY) in 2021E and by 11% to 2.41 billion baht (+28% YoY) in 2022E, as total revenue is forecasted to grow significantly in 2Q-3Q21E given Apple’s announcement to hold two events “Spring Loaded” on April 20 and WWDC on June 7-11, as well as a full-quarter revenue stream from the recent opening of 100 stores and higher demand for “work from home” products.