New Risk • Aug 13
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 35% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). High level of non-cash earnings (35% accrual ratio). Minor Risks Dividend is not well covered by cash flows (226% cash payout ratio). Market cap is less than US$100m (฿2.42b market cap, or US$73.1m). Reported Earnings • Aug 13
Second quarter 2026 earnings released: EPS: ฿0.21 (vs ฿0.38 in 2Q 2025) Second quarter 2026 results: EPS: ฿0.21 (down from ฿0.38 in 2Q 2025). Revenue: ฿145.7m (down 29% from 2Q 2025). Net income: ฿41.2m (down 46% from 2Q 2025). Profit margin: 28% (down from 37% in 2Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Software industry in Asia. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. 공고 • Jul 18
Netbay Public Company Limited Announces Progress of Litigation Netbay Public Company Limited provided an update regarding the legal dispute in which National Telecom Public Company Limited (the "Plaintiff") filed a lawsuit demanding that the Company pay service fees for the National Single Window (NSW) system in the amount of THB 424,875,408.84. This includes interest at the rate of 5% per annum, or at a new rate to be adjusted by the Ministry of Finance and enacted by a Royal Decree pursuant to the Civil and Commercial Code (as amended), plus an additional rate of 2% per annum on the principal amount of THB 404,164,343.08, calculated from the date of filing the plaint until full payment is made. The plaint was filed with the Central Administrative Court as Black Case No. 2636/2568. The Company hereby announces that on July 17, 2026, the Central Administrative Court rendered a judgment dismissing the case. The Court’s ruling established that the Company and the Customs Department had been bound by a legal relationship under the Collaboration Protocol Agreement (CPA) since 2007, which was terminated on April 25, 2025. The Company’s utilization of the NSW system was exercised pursuant to such rights and occurred prior to February 24, 2026, which was the earliest date the Plaintiff became lawfully entitled to the operating rights and could demand service fees for the new NSW system from the Company. Furthermore, no legal transactions were executed between the Company and the Plaintiff, nor did any contractual legal relationship exist between the parties. Therefore, the Plaintiff’s demand for the Company to pay the service fees as alleged in the plaint for the period from April 1, 2024, to April 30, 2025 (calculated up to April 25, 2025) is without legal basis. Consequently, the Company has no obligation to pay the claimed principal and interest. However, the said judgment of the Central Administrative Court has not yet become final. The Plaintiff retains the statutory right to appeal the judgment in accordance with the procedures and timeframes prescribed by law. Should there be any further progress, the Company will report accordingly in due course. The Company would like to express its sincere gratitude to its shareholders, investors, government agencies, business partners, customers, and all service users for their continuous trust, confidence, and support in the Company's operations. The Company reaffirms its commitment to conducting business with integrity and transparency under robust corporate governance, adhering to facts and ethical standards as the benchmark for driving its business forward, as the Company has always maintained. Finally, the Company remains committed to protecting the legitimate rights and interests of the organization and all stakeholders to the fullest extent of its capabilities. Valuation Update With 7 Day Price Move • Jul 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ฿11.40, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 23x in the Software industry in Asia. Total loss to shareholders of 35% over the past three years. Major Estimate Revision • May 16
Consensus revenue estimates fall by 30% The consensus outlook for revenues in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from ฿779.0m to ฿544.2m. EPS estimate fell from ฿1.36 to ฿0.75 per share. Net income forecast to shrink 44% next year vs 42% growth forecast for Software industry in Thailand . Consensus price target down from ฿15.00 to ฿8.20. Share price fell 32% to ฿10.40 over the past week. New Risk • May 15
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Thai stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (11% average weekly change). Dividend is not well covered by earnings and cash flows. Payout ratio: 90% Cash payout ratio: 115% Minor Risk Market cap is less than US$100m (฿2.08b market cap, or US$63.8m). 
