On Wednesday at 10:20 AM (Bangkok Time), the share price of Advice IT Infinite Public Company Limited (SET: ADVICE) was at THB 5.15, up THB 1.91 or 58.95% from the IPO price of THB 3.24 on the first trading day in the Thai stock market.
The share price rose as much as 91% to THB 6.20 per share earlier in the session.
ADVICE provides retail and wholesale IT products, such as custom computers, laptops, desktop computers, and accessories, as well as products related to smartphones and indoor electrical appliances via branches and online shopping, and offers a complete after-sales service.
Asia Plus Securities stated that ADVICE is an IT products and accessories retailer, including DIY computers, laptops, printers, desktop computers, smartphones, and electrical appliances. The business performance in 2020-2021 was supported by the positive effects of COVID as customers bought IT products for gaming, working, and studying at home, which caused the company’s profit to rise by an average of 79% to THB 430 million. However, the profit dropped to THB 206 million when the situation improved in 2022.
The analyst expected the company’s profit to decrease by 7% YoY to THB 190 million in 2023, following the sluggish IT products across the world and the gradual economic recovery in Thailand. Meanwhile, the company’s profit is expected to bounce back in 2024 to THB 266 million, an increase of 40% YoY, following the recovery of the country’s economy and the policy of the company to aggressively retail IT products and smartphones with high margins, such as products from Apple, to organization units.
As a result, the analyst gave a target price for ADVICE at THB 7.05 per share (based on 16.4 times PER with 30% discounts from the PER of commercial stocks in 2024, which is around 23.4 times).
