SABUY Gains 6% after Recording a 150% Increase in 3Q21 Earnings

The share price of Sabuy Technology Public Company Limited (SABUY) rose ฿0.70/share or 6.19% to ฿12.00/share in the morning session of Tuesday, with a trading value of 331 million baht.

SABUY reported a net profit of 56 million baht in 3Q21, increased 148% from a net profit of 22.54 million baht in 3Q20. The increase in the net profit was in accordance with enhanced efficiency in cost management for administrative expenses and recognition of net profit of A.T.P. Friend Service Co., Ltd and TBSP Plc.

The revenue in 3Q21 was 674.6 million baht, increased 69.5% from the same period of last year. This is due mainly to, the service expansion of company’s top-up machines spreading throughout nationwide with more reachable than bank branches and ATM, while people are taking more precautions against making direct human contact during this COVID-19 pandemic and with increasing revenue from additional rollout of ePayment services through 14 additional food courts tenants in the third quarter.

Moreover, the company generated higher revenue from selling higher-value products such as facemasks and telephone chargers through vending machines. In the meantime, the number of new vending machines and petrol vending machines installed in factories, offices, shops, and local community areas rose steadily even though with some difficulties in refilling products into vending machines located in department stores and some factories due to traveling restrictions or closure across the nation. In this quarter, the number of ShipSmile branches rose almost double to 4,040 branches. In addition, the company fully recognized (through financial consolidation) additional revenue from investment in subsidiary companies, A.T.P. Friend Service Co., Ltd and TBSP Plc.

Bualuang Securities reiterates its “BUY” rating on SABUY following the company’s better-than-expected third-quarter net profit. SABUY’s 3Q21 earnings increased by 149% YoY and 19% QoQ to 56 million baht.

Bualuang has a positive view about SABUY’s announcement of six major business deals, including the establishment of a joint venture company with FSMART to promote existing businesses and support future projects, the acquisition of assets to provide a service of 10,000 ATMs for ten years, and the increased investment in Shipsmile. As a result, Bualuang revised its earnings forecast and target price for SABUY.