Finansia Syrus Securities (FSS) noted that COM7 Public Company Limited (SET: COM7), a leading retail distributor of IT and mobile devices in Thailand, reported an impressive net profit of THB 1.2 billion for the fourth quarter of 2025.
This figure marks a new record high, representing a 17.3% YoY increase and a 38.5% growth QoQ, in line with FSS and market expectations. The robust financial results were attributed to seasonal factors, stronger sales momentum, and improvements in gross profit margin (GPM).
Meanwhile, COM7’s revenue expanded by 12.7% YoY and 37.7% QoQ, underpinned by continued positive market response to the iPhone 17, sustained growth in subsidiary businesses such as DOU7, Ufund, and EV7, and ongoing branch expansion.
The company opened 26 new stores during the quarter, representing a 2% increase YoY. Additionally, the financial consolidation of GI, the distributor of AION vehicles, contributed significantly after COM7 increased its stake from 40% to 88.5% on October 24, 2025.
Additionally, COM7’s GPM improved to 12.9%, up from 12.8% in 4Q24, largely due to more effective promotional campaigns. Selling, general, and administrative expenses as a percentage of sales (SG&A/Sales) declined YoY, reflecting the leverage from higher sales.
Improved profit margins offset the impact of a more conservative allowance for expected credit losses (ECL) in the quarter, with the non-performing loan (NPL) ratio still below 2%. This remains a point to monitor going forward.
Other positive factors included improved profit sharing from investments, a YoY reduction in interest expenses, and a lower effective tax rate.
Looking ahead, COM7’s profit for 1Q26 is expected to continue growing YoY, supported by ongoing sales growth and expansion into new businesses.
FSS anticipates COM7’s first-quarter sales growth of approximately 7-8% YoY, with sales in January up 15% and February flat due to a high base effect from the previous year’s e-receipt program and differences in new product launch timings. The company’s full-year 2026 net profit is projected to grow by 8% YoY.
Given these positive business developments and the emergence of a new growth trajectory (new S-curve), FSS maintains a ‘Buy’ recommendation for COM7, with a target price set at THB 31.00 per share.
Furthermore, COM7 announced a dividend payment of THB 1.1 per share, equivalent to a 4.4% yield, with the ex-dividend date scheduled for March 10, 2026, and a payment date set for May 8, 2026.
