Com7 Public Company Limited (SET: COM7) notched a three-day winning streak for a total of 5% increase, closing Friday at THB 19.50 per share with a total trading value of THB 228.01 million for the day amid positive view from broker.
Globlex Securities estimated that COM7 will demonstrate remarkable resilience as the global IT sector grapples with a sharp upturn in memory costs. Despite DRAM and SSD prices surging by three to four times in 2026—a phenomenon referred to as the “Memory Supercycle”—the brokerage firm projected that the impact on COM7 will be negligible.
IDC forecasts a 5% shipment decline in global PCs and a 3% drop in mobile phone deliveries for 2026, mainly due to the escalating cost of memory components. However, COM7’s direct exposure to the price-sensitive IT and component segment remains modest, constituting only about 10% of its total sales. The majority of its revenue streams come from Apple products, known for their premium pricing power and historical insulation from abrupt component cost volatility that typically destabilizes the mass market.
The premium nature of Apple devices positions COM7 favorably compared to its peers. While other smartphone manufacturers—especially those targeting budget-conscious consumers—are expected to pass cost increases onto buyers, Apple is likely to maintain stable selling prices. This pricing stability around the anticipated iPhone 17 cycle is expected to serve as a stabilizer for COM7, helping the company avoid the volume contractions predicted for lower-end market players.
Major original equipment manufacturers (OEMs) such as Dell and Asus have recently announced price hikes of 10–30% and approximately 15%, respectively, aligning with IDC’s projection of weaker unit shipments. Nevertheless, Globlex views the downside risk to COM7’s information technology (IT) revenue as contained.
The securities firm highlights that today’s PC replacement cycle is primarily driven by necessity—such as mandatory upgrades by corporations—rather than discretionary demand. This makes essential purchases relatively price-insensitive, and a 10–20% uptick in retail prices is unlikely to significantly defer hardware refresh cycles.
Additionally, any marginal drop in IT segment volume is expected to be mitigated by ongoing growth in COM7’s subsidiary businesses, offering a buffer to the group’s earnings profile.
Despite these fundamental strengths, COM7’s share price has corrected 30% from its recent peak, even in the wake of solid iPhone 17 sales. Globlex attributes this to routine profit-taking following major product launches, coupled with a current lack of significant short-term catalysts. As a result, the brokerage expects COM7 shares to trade in a sideways range for much of 2026. The next potential re-rating event, the broker note, could coincide with Apple’s rumored launch of a foldable iPhone in late 2026 or 2027.
Given these factors, Globlex maintains its “BUY” recommendation on COM7 but revises down the target price to THB 23 (from THB29), based on a 2026 estimated P/E of 14x. The brokerage views the current environment as an opportunity for value accumulation, rather than an immediate high-growth momentum play, pending the arrival of the next major catalyst for the stock.
