KGI Securities (Thailand) expects Com7 Public Company Limited (SET: COM7) to deliver record-high earnings in the second quarter of 2026 despite industry headwinds. The company is forecasted to report 2Q26 net profit of THB 1.3 billion, up 25% year-on-year and 2% quarter-on-quarter.
This robust performance is driven by growth in all business units, notably strong demand for iPhones, Android smartphones, and MacBooks, which is expected to lift IT business sales to THB 20.6 billion in 2Q26, a 9% increase from the previous year.
Including the delivery of around 1,500 GAC Aion vehicles and new loan growth at U-Fund of approximately THB 3 billion, consolidated revenue for the quarter is set to reach THB 24.2 billion, representing a 17% year-on-year and 3% quarter-on-quarter rise. Gross margin is projected to improve to 14%, supported by a favorable product mix, while SG&A expenses are expected to remain well-managed, with the SG&A-to-sales ratio at 7.8%.
Despite expectations of higher memory prices weighing on global PC and smartphone shipments in the second half of the year, KGI notes COM7’s resilient IT retail portfolio and ongoing expansion into non-IT businesses as key factors limiting the potential impact. Apple products continue to account for about half of COM7’s standalone sales, providing some protection against memory cost volatility.
Potential risks include demand delays due to higher memory costs and continued supply shortages, likely to persist through 2027. Additionally, strategic changes following Plan B Media’s (SET: PLANB) acquisition of an 11.01% stake in COM7 are highlighted as a watchpoint, particularly with the potential for increased expenses during the initial phase of new projects.
As a result, KGI maintains its 2026 earnings forecast for COM7, taking a conservative stance despite strong first-half results, which comprise 54% of the full-year forecast. The target price for the first half of 2027 remains at THB 28.00, based on a weighted PER of 14x, and the ‘Neutral’ rating is reiterated.
