Unlock the Power of Knock SAV: Revolutionizing Sales with Knock and Talk

September 23, 2024 Catherine Williams Business
News Context
At a glance
  • SAV reported a 2Q/67 net profit of 116.3 million baht, representing a 23.4% quarter-over-quarter (QoQ) and 39.6% year-over-year (YoY) increase.
  • The company's Gross Profit Margin (GPM) at the end of the period was 52.1%, up from 51.1% in the previous quarter.
  • According to the ASEAN + 3 Macroeconomic Research Office (AMRO), the Cambodian economy is expected to expand 5.6% in 2024, up from 5.0% in 2023.
Original source: thunhoon.com

SAV Reports 2Q/67 Net Profit of 116.3 Million Baht, Up 23.4% QoQ and 39.6% YoY

Increased Revenue Driven by Weather Traffic Management Services in Cambodian Airspace

SAV reported a 2Q/67 net profit of 116.3 million baht, representing a 23.4% quarter-over-quarter (QoQ) and 39.6% year-over-year (YoY) increase. This growth was driven by increased revenue from weather traffic management services in Cambodian airspace, as well as income from contracts with outstanding customers in the Domestic Landing and Take-off and Overflight groups.

The company’s Gross Profit Margin (GPM) at the end of the period was 52.1%, up from 51.1% in the previous quarter. However, QoQ income from Landing and Withdrawal services slowed due to seasonal factors.

Cambodian Economy Expected to Expand 5.6% in 2024

According to the ASEAN + 3 Macroeconomic Research Office (AMRO), the Cambodian economy is expected to expand 5.6% in 2024, up from 5.0% in 2023. This growth will be driven by the recovery of apparel exports and tourism, as well as increased domestic consumption. The services sector, which is a key area of focus for SAV, is expected to continue growing.

Future Prospects and Growth Opportunities

SAV is expected to sign a Memorandum of Understanding to control air traffic for Laos within the second half of 2023, which will support next year’s performance. The company is also in the process of transferring the Individual Distribution business of radar systems in the CLMV region from Samart Group, which is expected to generate revenue of around 300 million baht per year.

Technical Analysis and Recommendations

From a technical perspective, the trend alignment or swing of the candlestick is an upward swing alongside the 13-day SMA, which acts as a significant upward support line. The stock is also swinging in an Uptrend Channel pattern. The important support point to consider buying is around 22.00 / 21.60, and the resistance level is 22.40 / 23.00.

Recommendation: “Beat” Yes, in terms of technical factors.

ASL Instructions

In the case of “getting shares” holding/buying additional shares, expect to test the resistance 22.40/23.

In the case of “no stocks”, buy in the short term, focus on maintaining the 22.00/21.60 support level, it should not be lower than it.