Company Coverage
COM7 (COM7 TB): 2Q26 Results Preview: Expect Strong Earnings Growth
BUY (Maintained)
Current price:
Target price:
Upside:
Bt29.25
Bt32.50
+11.11%
Analyst
Highlights
- We expect 2Q26 earnings increase 22% yoy, driven by solid performance from both the IT retail and other businesses. Apple's price hike could trigger demand as consumers accelerate purchases, which is positive for COM7.
- Maintain BUY with a higher target price of Bt32.50 (from Bt30.00).
- Revise 2026-27 earnings forecasts up by 17% and 20% respectively and change valuation methodology from PE multiple to SOTP.
Analysis
- Strong earnings growth. We expect COM7 to report 2Q26 earnings of Bt1.23b (+22% yoy, flat qoq), driven by solid performance from both the IT retail and other businesses. Revenue is projected at Bt23.3b (+13% yoy, flat qoq), while gross margin is expected to expand 60bp yoy to 14.4% on a better product mix and a higher contribution from other businesses. SG&A-to-sales is expected to increase slightly to 8.1% (+10bp yoy).
- Retail business remains resilient. We expect the retail business’ earnings to increase yoy in 2Q26, driven by: a) 9% yoy sales growth, supported by higher product prices and resilient demand, b) gross margin increasing yoy from a higher sales mix of Android devices, which carry higher margins than Apple products, together with low-cost inventory, and c) a stable SG&A-to-sales ratio, as the impact of higher diesel prices remains limited.
- Other businesses continue to outperform. We expect U-Fund to deliver stronger earnings on continued loan book expansion to Bt6b-7b (1Q26: Bt5.1b). Gold Integrate should also report stronger EV sales as Motor Show deliveries ramp up, keeping the company on track to achieving its 2026 sales target of 4,400 units.
Highlights
- We expect 2Q26 earnings increase 22% yoy, driven by solid performance from both the IT retail and other businesses. Apple's price hike could trigger demand as consumers accelerate purchases, which is positive for COM7.
- Maintain BUY with a higher target price of Bt32.50 (from Bt30.00).
- Revise 2026-27 earnings forecasts up by 17% and 20% respectively and change valuation methodology from PE multiple to SOTP.
Analysis
- Strong earnings growth. We expect COM7 to report 2Q26 earnings of Bt1.23b (+22% yoy, flat qoq), driven by solid performance from both the IT retail and other businesses. Revenue is projected at Bt23.3b (+13% yoy, flat qoq), while gross margin is expected to expand 60bp yoy to 14.4% on a better product mix and a higher contribution from other businesses. SG&A-to-sales is expected to increase slightly to 8.1% (+10bp yoy).
- Retail business remains resilient. We expect the retail business’ earnings to increase yoy in 2Q26, driven by: a) 9% yoy sales growth, supported by higher product prices and resilient demand, b) gross margin increasing yoy from a higher sales mix of Android devices, which carry higher margins than Apple products, together with low-cost inventory, and c) a stable SG&A-to-sales ratio, as the impact of higher diesel prices remains limited.
- Other businesses continue to outperform. We expect U-Fund to deliver stronger earnings on continued loan book expansion to Bt6b-7b (1Q26: Bt5.1b). Gold Integrate should also report stronger EV sales as Motor Show deliveries ramp up, keeping the company on track to achieving its 2026 sales target of 4,400 units.
BUY (Maintained)
Current price:
Target price:
Upside:
Bt29.25
Bt32.50
+11.11%
Analyst
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