Finansia Syrus Securities downgraded its ratings for COM7 to ‘Neutral’, following a decrease in sales, a slower-than-expected GPM recovery, and a lackluster outlook for 2Q24.
The analyst foresaw a neutral to negative outlook for COM7 as the company’s gross profit margins recovered slower than expected following sluggish purchasing power, leading to a continuous launch of promotional deals. The analyst projected COM7’s revenue to grow by 8% in 2024.
Finansia Syrus Securities revised down the net profit projection in 2024 by 3% to THB 2.9 billion following the downgrade of GPM from 13.3% to 13.2%, following the slower-than-expected recovery and the branching decrease in 2024 from 100 to 70, while also downgrading the projection for 2025-26 by 1.5% and 1.3%, respectively.
The firm lowered its ratings for COM7 to ‘Neutral’ with a target price of THB 20 per share in 2024.
