Sector: Electronic Components
Sector Rating: Neutral
Current Rating BUY
Previous Rating BUY
‘08 Fair Value Bt1.68
Market Price Bt1.35
Consensus Bt1.67
4Q07 net profit grew 14% QoQ and 39% YoY. SVI’s 4Q07 net profit of Bt121mn is higher than our forecast of Bt90mn as SG&A expense declined 10% to Bt82mn in contrast with our expectation of a rise to Bt111mn. The profit represents growth of 14% QoQ and 39% YoY. Factors behind the result were revenue of Bt1.63bn (+5% QoQ, +11% YoY, in line with forecast) as the company added new production lines at its SVI-2 plant in November 2007 and as orders continued to rise trade forex. In addition, the gross margin was high at 11.3% compared to 11.6% the previous quarter as SVI was able to more effectively control costs via its supply chain management system and increased purchase of raw material from domestic suppliers. Excluding a forex gain of Bt8mn, normalized profit was Bt113mn, or a rise of 18% QoQ and 36% YoY.
