KGI Securities (Thailand) (KGI) projects Com7 Public Company Limited (SET: COM7) to record 1Q26 net profit of THB 1,151 million, a 17% increase year-on-year but a 5% decrease quarter-on-quarter, driven by strong year-on-year sales growth and improved gross margin. The forecasted net profit represents about 28% of KGI’s full-year estimate for the company.
Revenue for the first quarter of 2026 is expected to reach THB 23.9 billion, up 14% from the same period last year but down 10% from the previous quarter. Key growth factors include robust demand for the iPhone 17, attributable to its attractive specification upgrades and pricing, the expansion of the U-Fund hire purchase portfolio with new loans totaling approximately THB 2,500 million (compared to around THB 700 million in 1Q25), and revenue recognition from electric vehicle (EV) sales following an increase in COM7’s stake in Gold Integrate Co., Ltd (GI) from 40% to 88.5%, which led to revenue consolidation rather than equity income booking.
Furthermore, a reduction in promotional campaigns due to strong consumer demand, combined with the growth of U-Fund, is expected to lift the 1Q26 gross margin to 13.8%, a 20 basis point improvement year-on-year and a 90 basis point increase quarter-on-quarter.
COM7 is well-positioned to weather potential challenges arising from higher memory prices and potential demand softness, which could result from rising prices and supply shortages. This is largely due to its product mix, with approximately 50% of its IT retail portfolio based on Apple products, which are expected to show greater resilience compared to Chinese brands.
According to a KGI Taiwan report published in April 2026, global smartphone shipments for 2026 have been revised downward, with Chinese brands facing a double-digit decline year-on-year, while Apple is expected to post a modest 3% year-on-year growth. PC shipments have also seen downward revisions due to weak demand.
In addition, COM7’s diversification beyond traditional IT retail into segments such as U-Fund (financial services), iCare, and EV sales should help offset pressures in the retail sector and support bottom-line growth. U-Fund’s new loan issuance rose significantly to THB 6 billion in 2025 from THB 2.6 billion in 2024, with a target of THB 7 billion for this year, coinciding with the portfolio expansion from students to a broader set of personal loans.
Following these, KGI maintains its ‘Outperform’ rating on COM7, with a target price of THB 25.00 per share, and revises the 2026-2027 earnings forecast upward by 8-12% to reflect the potential for faster U-Fund growth and consolidated revenue from EV operations.
