COM7 : COM7 PUBLIC COMPANY LIMITED
9M/2023 (Jan - Sep 2023)
Business Overview
COM7 distributes IT products such as laptops, desktop computers, mobile phones, tablets, related accessories and product repair services. COM7 is the largest IT chain store in term of branches. COM7 distributes IT products via its own branches which are retail stores in leading department stores, shopping malls, and hypermarkets covering Bangkok and upcountry provinces.
Financial Statement
9M23 9M22 2022 2021
Income Statement (MB)
Revenues 49,627.95 44,182.17 63,025.62 51,154.66
Expenses 46,840.46 41,458.94 59,090.15 48,041.98
Net Profit (Loss) 2,189.21 2,127.95 3,037.71 2,630.39
Balance Sheet (MB)
Assets 20,831.56 19,603.54 19,162.45 15,965.74
Liabilities 13,239.34 13,182.40 11,910.55 10,664.99
Shareholders' Equity 7,485.82 6,344.54 7,154.47 5,284.86
Cash Flow (MB)
Operating 713.17 -1,169.11 1,643.72 559.81
Investing -625.37 -2,022.70 -2,434.55 -715.18
Financing -453.98 2,768.55 463.36 940.10
Financial Ratio
EPS (Baht) 0.91 0.89 1.27 2.19
GP Margin (%) 13.88 13.61 13.45 13.39
NP Margin (%) 4.52 4.83 4.86 5.14
D/E Ratio (x) 1.74 2.05 1.64 2.01
ROE (%) 44.81 56.63 48.84 57.58
ROA (%) 20.07 24.51 22.41 25.67
Business Plan
Sustainable Development Plan

The company is committed to being a leader in the distribution of cutting-edge technology products with excellent service through efficient management by a high-performing team. It aims to foster sustainable growth under responsible business governance throughout the value chain, considering the impact on stakeholders, society, and the environment. The company believes that operating on the basis of sustainability is a crucial foundation for promoting stable organizational growth.

The company has expressed its dedication to achieving Net Zero  organization by the year 2050 in line with the objectives of the Paris Agreement.


Business Highlight

In 3Q23, the company had 1,318 branches, expanding 156 branches compared to the end of 2022 (the end of Y2022 : 1,162 branches ) consisting of BaNANA, Bb, B-Play, BKK, BeBePhone, E-quip, Franchise, iCare, KingKong Phone, Studio7, True Shop by Com7, U-Store, Dr.Pharma, PetPaw and Brand shop.

Performance and Analysis
Business Performance Summary

Revenues amounted to Bt49,627.95mn, increasing by Bt5,445.78mn (+12.33%), compared to the previous year. The growth rate is slightly lower than anticipated by various factors, including: 

1)   Revenue from branches that underwent renovations in the previous quarter and gradually reopened in this quarter has not fully contributed to the current quarter's earnings.

2)   Revenue from the ADEPT, wholesale business, was impacted as sales of Realme branded products were discontinued. The sales of alternative brands to compensate for the lost revenue have not yet been successful.

The main positive factor came from the smartphone segment, with the launch of new products in 3Q23 from various brands, such as Samsung, Oppo, Xiaomi, Vivo, and particularly the iPhone 15. Additionally, the reopening of branches that underwent renovations in the previous quarter proceeded according to the planned schedule, allowing them to resume operations in the current quarter.

Expenses amounted to Bt46,840.46mn, increasing by Bt5,381.52 mn (+12.98%), compared to the previous year, the increase in the number of branches is accompanied by major expenses, including rent, employee-related costs, utilities, and depreciation. Additionally, the company has adjusted its allowance for doubtful reserve policy to enhance financial discipline since 4Q22. The company has been gradually recording loss entries from impairment of financial assets in accordance with TFRS9. In the upcoming quarters, the loss from the impairment of financial assets is expected to gradually decrease and return to a suitable level. The financial cost has increased due to the impact of the adjustment in interest rates by the Bank of Thailand and the increase in short-term borrowings. These borrowings were utilized as working capital for purchasing goods and expanding branches.

Net profit amounted to Bt2,189.21mn, an increase of Bt61.26mn (+2.88%) compared to the same period last year.

Key Milestones

Com7 Holding Company Limited (Subsidiary)

Gold Integrate Company Limited  In September, Com7 Holding Co., Ltd. made a joint investment in "Gold Integrated Co., Ltd." holding a 40% share from the registered equity of 1,000,000 common shares, each valued at 100 Baht per share. The company fully paid for these shares in September 2023 to engage in the electric car distribution business under the brand 'Aion'.

Risk Management Policy

Conducting business in the present era requires being prepared to face challenges, including business competition, innovation, technology, and rapid and constant environmental changes. In addition to implementing efficient internal control systems, the company places importance on risk management. This serves as a mechanism to manage uncertainty, turning it into opportunities that yield positive impacts while controlling risks to prevent negative effects on the organization's goals and objectives.

Recent Awards and Recognitions

Com7 received a 5-star "Excellent CG Scoring" rating for corporate governance assessment in the Y2023 from the Thai Institute of Directors (IOD), with the support of the Stock Exchange of Thailand

Com7 received a SET ESG Ratings "A" for the Y2023 from the Stock Exchange of Thailand (SET).

Revenue Structure
Retail Business 97.3% Others 2.7%
Stock Information
SET / SERVICE / COMM
Closing price COM7 SET index 38.00 28.50 19.00 1714.00 1609.00 1504.00 1399.00 3-10-22 5-1-23 31-3-23 4-7-23 29-9-23
as of 29/09/23 COM7 COMM SET
P/E (X) 23.20 30.64 20.33
P/BV (X) 10.72 2.24 1.44
Dividend yield (%) 2.42 1.74 3.18
29/09/23 30/12/22 30/12/21
Market Cap (MB) 74,999.95 81,599.94 98,100.00
Price (B/Share) 31.25 34.00 81.75
P/E (X) 23.20 26.72 43.04
P/BV (X) 10.72 12.78 22.42
CG Report:
*
Company Rating:
Set ESG Ratings "A"
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Major Shareholders
as of 09/03/2023
Mr. Sura Khanittaweekul (25.05%)
Mr. Pongsak Thammathataree (22.48%)
Thai NVDR Company Limited (5.38%)
Mr. Bancha Phanthumakomol (3.61%)
Ms. Aree Preechanukul (2.97%)
Others (40.51%)
Company Information and Contact
http://www.comseven.com
ir@comseven.com
0-2017-7777 Press 8
549/1 Sanphawut rd, Bangna, Bangna Bangkok 10260
Other Trading Info. : https://www.settrade.com/C04_01_stock_quote_p1.jsp?txtSymbol=COM7
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Published on 17/11/2023