Kasikorn Securities (KS) has expressed a positive view following COM7’s 2Q26 analyst meeting, highlighting the company’s confidence in the growth of its U-Fund lending business and the maintenance of robust asset quality.
For the second half of 2026, COM7 anticipates a credit cost of approximately 10%, a rate in line with the first half of the year. Regarding provisioning for outstanding debts, COM7 disclosed that debts categorized as Outstanding Debt (OD) 2 will be provisioned at 50%, while those in OD 3 (overdue for more than three months) will see a full 100% provisioning.
COM7 estimated the total market size for smartphone financing to be THB 70-80 billion, closely aligning with SGC’s forecast of around THB 100 billion. Regarding the Apple iPhone Leasing program, which was piloted in the U.S., the company expressed skepticism about its near-term adoption in Thailand due to local regulatory hurdles that differ significantly from those in the United States.
The company views recent price increases in IT products and smartphones as a positive factor, with higher average selling prices offsetting a decline in unit sales. In 2Q26, average selling prices were up by 20% year-on-year, while unit sales dropped by 10% year-on-year.
Looking forward, COM7 expects third-quarter 2026 revenues to maintain double-digit year-on-year growth, with same-store sales growth approaching double digits as well. This performance reflects strong consumer sentiment and positive feedback for new smartphone models such as the Z Flip Fold 8.
Notably, the debt-to-equity ratio increased in 2Q26, partially due to inventory stocking for IT products, loans for subsidiaries, and funding activities for the U-fund and EV7. However, the company anticipates a gradual decline in its D/E ratio over the second half of 2026.
Collaboration with PLANB has not yet resulted in significant synergies, but a joint planning process is underway. An Extraordinary General Meeting is scheduled for 17 September, with a strong likelihood that two additional PLANB board members will be approved.
As a result, Kasikorn maintains a ‘Buy’ recommendation on COM7, with an unchanged target price of THB 34.12 per share. At present, COM7 is trading on a 2026 price-to-earnings ratio of approximately 15x, compared to an expected earnings growth of 18.5% for the year.
