Stock news 29 February 2024 1:27 pm 2024-02-29
Mr. Sura Kanittaweekul, CEO Com7 Public Company Limited (COM7) aims for 2024 revenue growth of 10% from the previous year from organizing IT and technology products along with comprehensive services. Willing to move forward with products that meet consumer needs Accept the economic situation and regain purchasing power, including managing inventory control and reducing reserves. and interest costs are expected to be effectively reduced, while businesses invested in 2023 have not yet returned profits as expected. But we believe we will start to see a clear picture and support COM7 to have a strong profit base this year.
In addition, COM7 believes that the company’s smartphone group is doing well, accounting for around 60% of sales in 2023 and growing in line with the growth direction of the domestic smartphone market, while the forecast for the 1st quarter of 2024 is open. product and has benefited from the Easy E-Receipt measure to support purchasing power during the first half of the year, including focusing on developing online sales channels. Being an important tool for increasing sales
For ADEPT businesses operating wholesale businesses In the past year The company has canceled the wholesale distribution of Realme brand products and added new partners such as Infinix Tecno and Benco brands, and most recently in 2024 it was appointed as the only distributor (Only Distributor) for the TCL brand in Wholesale of smart phones and tablet products and also sees it as an opportunity to add new products through the company’s branch stores in order to generate additional income
Distribution channel It aims to open around 150 new branches in 2024, reflecting that business is still going well. Although the overall picture of the IT market last year did not look good, But this year it is expected to improve. It will open in shopping centers and focus more on the Standalone format due to the accumulation of experience and implementation Key Success of independent expansion, ensuring that in 2024 we will be able to expand our growth cost-effectively and obtain faster returns. o At the end of 2023, the Company had a total of 1,356 branches under management, an increase of 194 branches from 2022, an increase from the expansion of the Company’s branches to 79 branches and from the acquisition of BebePhone assets, 115 branches (in 2022 there was a Total number of branches: 1,162 branches)
For the BeBePhone store in which the company has invested in 2023 to overcome the Accessories group, although it still has a poor performance. This is because last year management and systems were in place to create readiness for growth. It is seen that this year BeBePhone will start generating good income and profit. By planning a strategy to distribute Brand House products through branch stores.
Ready to capture the used iPhone market under the BaNANA SURE brand Last year, we tried to open the Shop-in-Shop format within 6 BaNANA stores, which received a good response. It is expected that the distribution channels this year will be added to approximately 50 branches. The domestic used mobile phone market has many devices, so we see this as an opportunity. For the IT product insurance business This is a new business under the name iCare Insurance. There is not much profit in 2023 from recognizing income gradually according to the period of the agreement. But it will increase significantly this year and next year. From the response of customers who buy more insurance along with the product.
Including the increase of the drugstore business under the Dr.Pharma brand, sales by branch are still doing well. But admit that the costs are still high. which we will manage better this year and a pet restaurant under the Pet Paw brand name. The strategy is to focus on online platform customers. It is expected that the operating results will be better than last year.
Regarding the progress of investing in Gold Integrate Company Limited, which holds 40% of shares, to operate a business selling electric cars under the Aion brand in 2023, 5 branches are already open for in-store servicing departmental, and about 2,000 have been provided. vehicle
In addition, COM7 previously acquired 40% shares in Double Seven Co., Ltd (DOU7) (a subsidiary of the company) from Sabai Fulfillment Co., Ltd. (SBFFM), a subsidiary of Sabai Public Company Limited Technology (SABUY) ) causes the Company’s shareholding in DOU7 to increase from 60% to 100% Therefore, this year the Company will fully recognize 100% of its profit share of DOU7.
Meanwhile, 2023 operating results were affected by the slowdown in consumer spending throughout the year. Especially at the end of the year, which is expected to be the company’s high season, including rising costs. As a result, the company’s majority profit was 2,857.2 million baht, a decrease of 5.9%, although sales and service income was 69,559.5 million baht, an increase of 10.9% from the launch of new products in the smartphone product group which has very interesting technology In general, same store sales growth in 2023 (Same Store Sales Growth) increased 7.0% (excluding branches closed for renovations that have less than a full year’s sales days in the census).
By InfoQuest News Agency (29 February 2024)
Tags: COM7 , COM7 , Sura Kanittaweekul , Thai stocks
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