InfoQuest News Agency (24 April 2024)
TERA closed the first day of trading at 2.80 baht, an increase of 1.05 baht or +60.00% from the IPO price of 1.75 baht. Trading value 1,216.16 million baht from the opening price of 3.90 baht, highest price 4.04 baht, lowest price 2.70 baht.
TISCO Securities stated in its analysis that Terabyte Plus Public Company Limited (TERA), designer, installer, and distributor of IT equipment. and provides integrated information technology infrastructure systems such as server systems, storage systems, network systems, and cyber security systems.
The company was appointed as a Platinum Partner of HPE (formerly HP), after which the company further distributed and provided Local Cloud services under the company brand “T.Cloud” and expanded its business to Public Cloud services. Such as Microsoft Azure from Microsoft and AWS from Amazon.
It also distributes and provides transportation, distribution and logistics management system software (TMS) through the “Skyfrog” application, including designing, distributing, providing installation and after-sales services at Regarding the integrated data center room, TERA has been a subsidiary of NEX since 2018 with a shareholding of 51 percent.
Prominent in providing Cloud services and continuity of income, TERA is a distributor of IT equipment and provides many information technology systems in the market. There may also be related or similar products and services. which can partially replace each other, however, each operator has different strengths
TERA has strengths in services that meet the needs of customers. Important growth comes from providing Local Cloud services under the company’s own T.Cloud brand and Public Cloud services from Microsoft and AWS, focusing on services that create recurring income, such as equipment maintenance and maintenance services. (MA) T.Support and T.Support Plus services as well as being the owner of application software under the trademark “Skyfrog”, a transportation management system that answers the need for efficiency in managing transportation costs. which accounted for approximately 49 percent of total revenue in 2023
Service income helps support total income growth. It is expected that 2024 income will grow primarily from service income. Especially Cloud services that follow the trend of transformation into the digital era. This causes the demand for cloud space to increase and the proportion of revenue from services is expected to increase to more than 50 percent, with the company focusing on expanding services and having a backlog waiting to be realized for service revenue in 2024. It is approximately 171.36 million baht, which represents 57 percent of service income in 2023.
Profits grow as service income increases. It is expected that the gross profit margin will increase from increased service income. which has a gross profit margin higher than the gross profit margin from sales combined with efficient control of sales and administrative expenses Including no one-time expenses for registering a company. It is a factor supporting the net profit rate in 2024 to expand continuously from 2023.
Raising funds to invest in the new T.Cloud version and related businesses. and to finance the project bidding this time is appropriate. Factors that need to be monitored include 1) providing new services in the future 2) investing in related businesses. This will be a positive factor for future operating results.
Important risks include 1) changes in technology, 2) high competition, 3) the value and number of jobs added each year. The preliminary assessment is based on the average PER of similar business operators at 10.9x times. It is considered that the value is appropriate at the IPO price and already has a premium.
By Phacharathorn Phumikham/Sasithorn Simaporn
