Analyst Expects SIS’s Earnings to Grow Continuously throughout 2021, Recomm. “BUY” at ฿30

SIS Distribution (Thailand) Public Company Limited (SIS)’s earnings are expected to expand continuously throughout the first half of this year with key highlights as follows:

 

1) The consumer sector: the product shortage is expected to improve as SIS plans to increase China’s IoT import capacity, and boost revenue from online platforms as well.

 

2) Value-added sector: revenue from cybersecurities is expected to grow due to the implementation of Personal Data Protection Act and Cyber Act.  

 

3) Smartphone sales continue to remain high, especially products with prices below 5,000 baht, and Xiaomi makes no delay in 2021 new product launch.

 

4) Data center and cloud service business is projected to expand more than 100% due to the coming of 5G technology, along with a rising demand in data center and cloud service business.

 

KTBST Securities (KTBST) believes SIS’s 2021 earnings to grow 30% YoY to 774 million baht, being similar to the Garnet forecast which estimated Thailand’s software and devices outlook this year to increase 14% YoY and 12% YoY, respectively. While global smartphone sales are expected to expand 11% YoY, as a result, KTBST recommended “BUY” on SIS with a target price of ฿30.00/share.