How High Can COM7’s Profit Go from the Apple Mania?

Every year in early September, shares of COM7 Public Company Limited (COM7) are always extraordinarily joyful due to the launch of new iPhones. COM7 always rallies as it has got the selling rights of iPhones while having Studio 7 and Banana shops as a channel for selling Apple’s products.

 

However, the atmosphere this year is quite dull and prior to the launch of the new iPhones, the share prices of COM7 had just gone down for two consecutive days, unlike previous years.

On Monday, September 9, the share prices closed at ฿25.25/share, decreased ฿0.50/share or 1.94%. The next day the share price also lowered to ฿24.90/share, declined ฿0.35/share or 1.39%.

 

Apple revealed 3 new iPhones on Tuesday, September 10, including iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max. The prices of these series start at 24,900 baht, 35,900 baht and 39,900 baht, respectively. The new iPhones will be available in 30 countries on 20 September.

But COM7 had merely little responds from such news and closed the market at ฿25.25/share, increased ฿0.35/share or 1.41% with a trading value of 216 million baht.

It’s really disappointing! Has the magic of iPhone faded away?

 

Apple has to admit that its rivals such as Samsung, Huawei or Oppo can significantly lure customers from the development of their mobile phones with no differences. At the same time, the prices of the previous generation of iPhones were too expensive for consumers to reach, which made its sales not as strong as its early generations.

It’s important to focus on the sales of three new iPhones’ to see if the lower prices will make them more popular or not. Whether it’s a bull or bear, the sales report will be announced soon!

If the sales have good responses, it will further support the current year performance of COM7.

 

The performance of COM7 is considered to be better than expected after making a net profit at 294 million baht in the second quarter of 2019, increased 36.1% from 216 million baht in the second quarter of 2018. The sales and service revenues also increased 15% to 7,751 million baht, compared to 6,741 million baht in the same period of last year.

This made the company had the first half net profit higher 39.2% to 544 million baht, from 391million baht in the same period of the year earlier. The sale and service revenues in the first six month of this year were at 15,369 million baht, increased 16.6% from 13,177 million baht in the year earlier. These numbers make investors widely smile.

 

Analysts expected that COM7’s net profit in 2019 will grow 17.5%, compared to the same period of the year earlier and will continuously increase 15% in 2020. But if the new iPhone’s sales is snag, there is a chance that COM7’s numbers may not be as explosive as expected. If it’s in that way, it’s every man for himself!!