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BaNANA and Apple, but Com7 Doesn’t Run Fruit Stores

Background

Com7 Public Company Limited engages in retail of IT products.

The company conducts its business through the own brand, BaNANA, as well as official retail stores for Samsung, Oppo, and other major brands. In combination with authorized stores and service centers for Apple and TRUE, COM7 operates over 400 stores across Thailand.

Business Description

COM7 operates through both brand dedicated retail outlets and own branded general outlets, BaNANA, BaNANA mobile, and BKK Shop. Laptops and Desktops are retailed under 161 branches of BaNANA while Mobile phones and Tablets are retailed under 79 stores with six different brands. Associated accessories are retailed in their respective stores.

Apple (AAPL US) branded products are retailed separately under COM7’s dedicated brand, Studio7, which is 27% of COM7’s retail stores.

Support services are offered under three different brands, serving different product types. COM7 operates 166 branches of TRUE shops in partnership with TRUE corporation (TRUE TB) to provide services and serves as another channel of distribution. iCare is an Authorized Apple (AAPL US) service provider which offers Apple product support. BaNANA service center handles general products from BaNANA store.

BaNANA website revenue has grown substantially to about US$4m in 1Q18, equates to 38% of 2017 web sales. The new version of the website under development is expected to release mid-2018.

Leadership

Siripong Sombutsiri has served as the independent Chairman of COM7 since 2014. He graduated from Chulalongkorn University, Thailand with a Bachelor of Accountancy and got his MBA from Sul Ross University, US.

Sura Khanittaweekul is the current CEO and Vice Chairman of COM7. He has been in the position since 1996. Mr. Khanittaweekul is also the largest shareholder with 29% of the outstanding shares. He earned a BBA from Assumption University, Thailand and an MBA from Indiana University, US.

World Class Benchmarking

Profitable Growth has shown clear improvement since 2014 and ranked at #since 2017. In the past 12 months, COM7 ranked in the top 20% on Profitable Growth which is among the best 256 out of 1,280 large Consumer Discretionary companies worldwide.

Profitability shows the same trend and ranks as Profitable Growth. Growth has ranked in the top 30% among comparable firms since 2016.

Asset utilization has persistently shown top performance and ranked in the top 10% for the whole time period. Profit margin has been poor but gradually improved from #9 in 2014 to rank #7 in the past 12 months.

Sales growth has seen a strong improvement and ranked #1 since 2017. Margin change has continuously stayed about average.


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