SiS Distribution (Thailand) Public Company Limited

Kasikorn Securities estimates that the normal profit of SIS Distribution (Thailand) Public Company Limited, or SIS, in the third quarter of 2026 will be 252 million baht, up 17% year-on-year and 11% quarter-on-quarter, after management provided information during a call with the CFO on September 23 that the business outlook for this year remains strong. Third-quarter 2026 sales are expected to grow both year-on-year and quarter-on-quarter across all business groups, including the commercial customer group, the consumer group, the enterprise customer group, and others, except smartphones, which are expected to weaken year-on-year. The commercial and consumer groups are likely to grow at double-digit rates year-on-year on the back of a strong PC and notebook replacement cycle in both the private and public sectors. Overall gross margin is expected at 7.4–7.6%, down slightly from 7.6% in the third quarter of 2025, due to a higher proportion of lower-margin government project sales. Solar products account for roughly 2–3% of revenue this year. Under the assumptions of 12% year-on-year sales growth in the third quarter of 2026, a 7.3% gross margin, and SG&A at 3.7% of revenue, normal profit for the first nine months of 2026 will be 673 million baht, up 4% year-on-year, or 76% of the full-year 2026 normal profit forecast. The research team maintains a Buy recommendation with a mid-2027 target price of 26.63 baht, expecting earnings per share to grow 13% in 2026 and offering a dividend yield of 5.8%. It also notes that a price level of 23 baht or below is an attractive point to re-enter the investment.

Somchai Sitthichaisrichart, Managing Director of SIS Distribution (Thailand) Public Company Limited, or SIS, disclosed that the earnings outlook for the third quarter of 2026 remains strong, with sales of IT products continuing to expand, particularly for the Samsung and Xiaomi brands. Meanwhile, the solar cell business has grown as much as fivefold compared with last year, and it is expected to keep growing several times over next year from a larger base. At present, the company has approximately 100 to 200 customers or agents who buy products for resale. The company is being supported by government measures that provide 50,000 baht per household for solar installation, with a target of covering 1.5 million households, as well as a people's solar project of another 10,000 megawatts. However, in the third quarter of 2026, solar cell sales slowed because of heavy rain and because people delayed installations to wait for subsidies, so clear positive results are expected in the fourth quarter of 2026 through the first quarter of 2027. In the first half of the year, the company had total net profit of 525 million baht and total revenue of 15.785 billion baht, and it has set a target of return on equity, or ROE, of no less than 20%.

Brokers view the outlook for the IT retail and wholesale sector in Q3 2026 as still strong, supported by sales of Apple and Android smartphones as well as the commercial segment where demand is accelerating. They highlight three standout stocks: COM7, ADVICE, and IT City. Charnthawat Sukhanan, an analyst at Kasikorn Securities, said sales in July and August grew strongly, with COM7 expected to see sales growth of more than 15% YoY, ADVICE around 20% YoY, and IT City more than 20% YoY. Meanwhile, wholesaler SIS is expected to grow more than 10% YoY, and SYNEX has also reported growth. The research arm maintains a Positive view on the gadget group, favoring retailers over wholesalers, with target prices of 34.12 baht for COM7, 8.82 baht for ADVICE, and 10.83 baht for IT City. It also points to attractive entry points if prices weaken and recommends watching the launch event of Apple's iPhone 18 on September 9.

SiS Distribution Thailand, or SiS, is advancing its robotics business into humanoid robots by importing the DOBOT Atom, the first model from DOBOT, to support collaboration with humans in the AI era and an aging society. The global humanoid robot market was valued at approximately 4.89 billion US dollars in 2025 and is expected to expand to over 165 billion US dollars by 2034. Meanwhile, Thailand is entering a fully aged society, with the proportion of the population aged 60 and above projected to reach about 30 percent of the total population by 2035. SiS showcased the DOBOT Atom at the Thailand–China Cooperation Expo 2026 in the Humanoid Robot Showcase zone, one of the event's highlights demonstrating AI and robotics potential from leading Chinese developers. Managing Director Somchai Sittichaisrichart said that humanoid robots will play a key role in enhancing organizational productivity and driving the transformation of Thai businesses in the AI era.

SIS disclosed that its large stock of older, lower-cost PCs will support earnings in the third quarter of 2026, even as rising IT equipment prices weigh on sales of entry-level smartphones, which form its main customer base. While unit sales may drop 10 to 15 percent, a price increase of up to 30 percent means the company still expects revenue growth. Managing Director Somchai Sittichaisrichart said the company has divided its customer base into three groups based on profit impact. The group that was loss-making due to old-price contracts requiring delivery at new, higher costs has already been dealt with. As a result, profit in the third quarter, which is the high season for the business, is expected to improve as the market adjusts to new pricing and margins rise.