FSSIA Recommends “BUY” on BBIK at THB135, Seeing Profit Upside from Investment in Innoviz

Bluebik Group Public Company Limited (mai: BBIK) announced on December 1, 2022, that the board of directors’ meeting No.5/2022, has resolved significant resolutions as follows;

1) Approved the company’s investment in the consulting business on the development of ERP systems by investing in ordinary shares in Innoviz Solutions Company Limited (Innoviz) in the amount of 100,000 shares with a par value of Baht 100 per share or equal to 100% of all shares of Innoviz. The total value of all considerations for entering into this transaction will be based on the Net Profit of Innoviz for the year 2022-2024 and agreed to set the consideration value not more than Baht 904,000,0000 (equivalent to an average price of not more than Baht 9,040 per share) by paying in cash in full according to the payment periods which will be separated into 3 tranches.

The expected benefits for the company are to gain an opportunity of expanding the company business and increase potential of the End-to-end digital transformation partner, for the most advantage of the company which is expected from Innoviz investment.

2) Approved the company’s investment in the business of Digital Delivery or information technology systems and applications development (Software Development) through acquisition of all ordinary shares in Vulcan Digital Delivery Co., Ltd. (VDD) the amount of 500,000 shares at the par value of Baht 100 per share or representing 100.00 percent of total shares in VDD which the total investment value is Baht 691,000,000 or equal to Baht 1,382 per shares.

The expected benefits for the company that sees growth opportunities for software development business, which is constantly growing. It is a business from which the Company can develop its core business that is strategy and innovation and technology management consulting business.


FSS International Investment Advisory (FSSIA) stated that the investment in Innoviz, which is in the ERP development consulting business, and VDD, which is in the digital delivery business, for Bt1.2-1.6bn. They should increase the profit by 27% in 2023, more than the dilution from the 10% capital hike. Also, they would make BBIK’s service profile more complete for long-term expansion. FSSIA’s TP of Bt135 does not include the upside from such deals. FSSIA’s rated BBIK as BUY.