COM7: Oppday Q3/2025 บมจ. คอมเซเว่น

Company Performance Overview

Introduction of Speakers

• The session begins with greetings from the speakers:

• Investor Relation Manager, Mr. Niyom Thai.

• Senior Finance Manager, Ms. Kachakorn Booranawutthikul.

• Business Development Manager, Mr. Itthong Imphor.

Company Update and Q3 Highlights

• The meeting aims to disclose the performance of the company for Q3 of fiscal year 68 and provide insights into the first nine months.

• Key highlights include:

• Discussion on three main products: HCH, FUN, and EV7 (electric vehicle rental).

• Introduction of IC Insurance as part of their offerings.

Performance Metrics

Revenue and Profit Analysis

• In Q3, revenue reached approximately 19.2 billion THB, reflecting a growth rate of 7% year-on-year.

• Net profit for Q3 was reported at 872 million THB, marking a significant increase of 23% compared to the same period last year.

Market Context

• Despite market challenges in Q3, particularly in smartphone sales:

• The company aims for a growth target of around 20%.

• Supply constraints on new products have impacted availability.

Trends and Projections

Quarterly Trends

• Historical data shows that Q3 typically experiences lower revenue compared to Q4 due to seasonal product launches like new iPhones.

• Anticipated peak season in Q4 is expected due to holiday sales and new product releases.

Nine-Month Performance Summary

• For the first nine months:

• Total revenue was approximately 60.8 billion THB with a growth rate of about 9%.

• Net profit over this period reached around 2.86 billion THB, indicating a robust growth rate of approximately 25%.

Future Outlook

Continued Growth Expectations

• Over ten years since entering the market, consistent growth in both revenue and profits has been observed.

• Positive trends are noted in supply chain improvements leading into Q4.

Product Mix Insights

• Smartphone sales remain dominant at about 61% but are expected to rise slightly due to new iPhone models launching during peak season.

Market Growth Insights

iOS Market Performance

• The iOS market, particularly the iPhone segment, has shown significant growth, although overall growth is reported at only 3% in terms of dimension three.

Insurance Sector Highlights

• A notable highlight is the growth in insurance products, specifically IC insurance, which will be discussed further regarding its sources of growth.

Branch Expansion and Closure

• By Q3 of this year, branch numbers increased to 1,331 from 1,312 at the end of last year. This reflects an 11% increase compared to the first half of the year and a 19% increase from last year's end.

• The company closed around 40 branches that were underperforming or not aligned with future business strategies. Notably, about 70% of closures came from Marana stores.

Revenue Generation Strategies

• New store openings are expected to generate significantly higher revenues than those closed. For instance, new stores can generate millions compared to previous ones generating tens or hundreds of thousands.

Monitoring Store Performance

• The company actively monitors the bottom 20% of stores monthly and quarterly to assess traffic and performance for necessary adjustments.

Product Development Updates

Loan Product Growth

• The company's loan product under "Diffang" aims for a customer debt value reaching THB 4 billion by year-end with an average annual growth rate projected at 28%.

Portfolio Expansion Strategy

• Since inception in Year One and portfolio expansion in Year Two (2024), there has been consistent growth across personal loans and Android-based products.

Approval Rates and NPL Management

• Approval rates have fluctuated; as of mid-year, they reached approximately 35%, maintaining a low non-performing loan (NPL) ratio below 1%.

Future Plans for Financial Products

Upcoming Innovations

• Plans include launching new financial products tailored for Android smartphones with positive initial reception noted since April.

Mobile Application Enhancements

• In response to consumer demand for mobile applications, enhancements are being made to improve speed and user experience.

Trade-In Options

• Future offerings will allow customers to trade-in devices annually through flexible payment options integrated into their app experience.

Service Fund and Business Updates

Overview of Service Fund Expansion

• The Service Fund is expanding with approximately 500 branches, aiming for a full rollout to around 7,000 retail locations across Thailand in Q3.

• The "Blue" initiative is highlighted as a significant contributor to revenue and profit growth, reportedly doubling in performance.

EV7 Operations and Statistics

• Since the beginning of the year, 800 EV7 rental contracts were completed by Q2, with a vehicle return rate of 3% due to various personal reasons.

• Accident rates are noted at 10%, with severe accidents accounting for 1%. Average repair time for serious accidents is reported at 46 days.

• Late payment on rentals is under 1.5%, indicating healthy financial management despite some contract cancellations due to poor driving behavior.

Performance Metrics and Future Goals

• By 2025, there are plans for a fleet of 2,600 vehicles; however, only 300 out of a target of 800 have been released so far this quarter.

• Delivery issues related to both EV7 and ION models have impacted sales negatively; over 300 vehicles remain pending delivery as Q3 concludes.

New Product Launches

• A new model called Y Plus 490 has been introduced with an increased rental price but improved range capabilities. Initial reception has been positive.

• In October alone, the Y Plus model accounted for three-fourths of all rentals due to its enhanced features allowing drivers more operational flexibility.

Charging Infrastructure Development

• Plans are underway for establishing charging stations at two initial sites equipped with DC chargers to enhance user convenience during vehicle charging.

• Collaboration with EA Anyware aims to provide extensive charging options nationwide while offering promotional benefits like free monthly credits for users.

Carbon Credit Initiatives

• Future projects include generating carbon credits from electric vehicles (EV), contributing positively towards sustainability goals through increased vehicle usage compared to traditional cars.

Insurance Business Growth

Performance Overview

• The insurance business under IC Insurance reports significant growth in Q3, achieving a revenue increase of nearly double compared to the previous year.

Consistent Revenue Growth Across Quarters

• Revenue growth has been consistent across all quarters (Q1-Q3), surpassing last year's figures by over 31% within just nine months into the current fiscal year.

This structured summary captures key insights from the transcript while providing timestamps that facilitate easy navigation back to specific points in the discussion.

Growth in Mobile Products and Insurance Services

Overview of Growth Metrics

• The company has shown strong growth, particularly in mobile products, with revenue from this segment increasing from 40% to 44% year-over-year.

• Motor insurance also saw a rise from 12% last year to 14% this year, indicating steady growth across major product lines.

Highlights of New Product Launches

• A new mobile product called CER Plus was developed in partnership with Apple, comparable to Apple Care services.

• CER Plus offers comprehensive protection for Apple devices at a price reduced by over 50%, enhancing customer accessibility.

Sales Performance and Partnerships

• Sales of mobile product insurance have grown by over 53% compared to the previous year's launch period of iPhone 16.

• The company has partnered with True and Advice for developing smartphone insurance products, expanding its market reach.

Ecosystem Integration and Profitability

• The integration of motor insurance within the company's ecosystem is highlighted through partnerships with EV7 for taxi rental services.

• By controlling both sales and claims processes, the company aims to enhance profitability while managing accident rates effectively.

Future Strategies and Market Expansion

• Plans are underway to offer insurance alongside all products sold under the brand, aiming for broader market penetration.

• There is potential for significant market expansion through various retail channels like Bana and Studio 7.

Addressing Consumer Concerns

• In response to rising scams affecting consumers, a Cyber Security insurance product has been launched to protect users against fraud.

• This initiative targets vulnerable demographics such as seniors who may be less aware of online threats.

This structured summary captures key insights from the transcript while providing timestamps for easy reference.

Revenue Trends and Product Insights

Q3 Revenue Decline and Future Projections

• The revenue for Q3 is noted to be lower compared to Q2, indicating a seasonal dip. It is expected that Q3 will have the lowest figures, with projections for a peak in Q4.

• There are questions regarding the anticipated performance in Q4, with expectations of growth driven by smartphone sales, particularly from the iPhone.

iPhone Performance and Market Dynamics

• The iPhone's limited availability (only 10 days in the market during Q3) raises concerns about its impact on overall sales figures. Comparatively, Android smartphones lack standout products this quarter.

• The launch of the iPhone 17 has received positive feedback globally, outperforming previous models like the iPhone 11. This suggests strong customer interest and potential for increased sales.

Broader Smartphone Market Trends

• Other brands such as Samsung, Oppo, Vivo, and Xiaomi are also releasing new products that could influence market dynamics positively as we approach Q4.

• Despite a drop in sales during Q3, there are signs of recovery heading into Q4 as consumer demand begins to rise again.

Additional Product Lines Supporting Growth

• Besides the iPhone, other Apple products like MacBooks and iPads are expected to contribute positively to revenue streams in Q4.

• Various promotional strategies including flexible payment plans (up to 48 months) aim to enhance consumer spending on these products.

Operational Strategies and Expansion Plans

Fleet Management and Rental Operations

• Questions arise about how vehicle repossession or lease cancellations are managed; vehicles are refurbished before being re-rented out.

Store Expansion Strategy

• Plans indicate an ambitious goal of opening nearly 100 new branches within a single quarter. As of October, over 30 new locations have already been launched.

Business Adjustments Based on Performance

• Some underperforming branches have been closed based on profitability assessments; this includes certain food-related businesses which were deemed unsustainable.

Product Offerings and Consumer Engagement

Focus on Customer Experience

• New store openings emphasize creating community spaces where students and tourists can engage with technology through workshops or shared workspaces.

Solar Products Readiness

• Preparations for solar product offerings align with government policies; readiness is emphasized for when regulations regarding tax incentives come into effect.

Financial Insights Related to Leasing

Accounts Receivable Overview

• Discussion around accounts receivable highlights their origin from leasing agreements related to consumer goods sold through retail partners like Seven Eleven.

Financing Options for Consumers

• Financing options provided by Thunder Fin allow customers without credit cards to purchase items through installment payments at various retail outlets.

Discussion on Vehicle Maintenance and Employee Incentives

Vehicle Maintenance Challenges

• The speaker discusses the frequency of vehicle repairs, noting that drivers often require their vehicles for work. Accidents can lead to multiple repair instances before a vehicle is brought in for maintenance.

• Despite the challenges, the company manages to handle the number of vehicles requiring maintenance effectively.

Growth in Mobile Phone Insurance Sales

• A question arises regarding the percentage of mobile phone sales that include insurance. The speaker acknowledges this trend, particularly highlighting a product called "Cover Plus."

• There has been a significant growth rate of 53% in insurance sales; however, the actual market penetration (or "attack rate") has increased from approximately 10% to 20% with new offerings.

Stock Allocation and Employee Benefits

• Discussion about stock allocation reveals plans for employees and executives to purchase shares. If not all offered shares are taken up by employees, there will be adjustments made by the company.

• The incentive program aims to reward high-performing employees and encourage continuous improvement within the workforce.

Financial Projections and Performance Metrics

• Questions arise about projected profits for Q4, with comparisons drawn against previous quarters indicating positive momentum.

• The speaker mentions targets for sales figures and emphasizes key drivers behind profit margins, particularly focusing on specific business segments like insurance.

Future Outlook on Business Growth

• Insights into emerging products indicate potential growth areas as certain offerings begin to yield results.

• The session concludes with gratitude expressed towards participants, signaling an end to discussions while hinting at ongoing developments in various sectors discussed.