We maintain a BUY recommendation on TEAMG with an unchanged target price of Bt2.81, implying an upside of 29% from the current share price. We derive our target price from a DCF-based valuation using a WACC of 7.4% and a terminal growth rate of 2%. We apply a 15% small-cap discount.
Investment thesis:
Interim: TEAMG’s revenue has been resilient as revenue from government projects has grown. Though, these projects have a lower gross margin. Based on the 9M20 results, we revise down our 2020E forecast slightly.
Risks: Recruitment of qualified personnel, delay in project completion, changes in government policies, increased competition from overseas, failure to keep pace with technological trends.
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