Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

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Thai Equity - Bottom-up - Equities

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Equity Bottom-Up

One Enterprise Public Co Ltd / Equity Bottom-Up

<ul>
<li>The company continues to gain make share in zero-growth digital TV industry as its TV rating climbed to 3rd place in terms of all-day rating in 2Q22.In addition,channel ONE(n0. 31) </li>
<li>2Q22 earnings drop to three-quarter low The company report 2Q22 net profit at Bt179m (-32%YoY -29%QoQ). QoQ and YoY drop in earnings pressured by contraction in gross profit </li>
<li>QoQ drop in revenue mainly dragged by content sales that normalized from high base in 1Q22 to Bt339m (-26%QoQ)in 2Q22 while revenue from production services fell by 18% to Bt101m</li>
</ul>


The company continues to gain make share in zero-growth digital TV industry as its TV rating climbed to 3rd place in terms of all-day rating in 2Q22.In addition,channel ONE(n0. 31) 
2Q22 earnings drop to three-quarter low The company report 2Q22 net profit at Bt179m (-32%YoY -29%QoQ). QoQ and YoY drop in earnings pressured by contraction in gross profit 
QoQ drop in revenue mainly dragged by content sales that normalized from high base in 1Q22 to Bt339m (-26%QoQ)in 2Q22 while revenue from production services fell by 18% to Bt101m


ONEE : Accumulate on Weakening Earnings Outlook

<ul>
<li>Maintain BUY for ONEE but cut target price to Bt11.60.(Previous TP:12.70) after revised down earnings by 13% in 2022E due to slow recovery in TV ad spending. We believe 15%QTD </li>
<li>Expect earnings in 2Q22 to remain dull We expect the company to report 2Q22 net profit at Bt123m (-53%YoY -51%QoQ). Disappointed earnings should be pressured by contraction in gross profit</li>
<li>QoQ drop in revenue should be by content sales that normalized from high base in 1Q22 while revenue from production services shall fall by20%QoQto Bt100m given lower number of contents</li>
</ul>


Maintain BUY for ONEE but cut target price to Bt11.60.(Previous TP:12.70) after revised down earnings by 13% in 2022E due to slow recovery in TV ad spending. We believe 15%QTD 
Expect earnings in 2Q22 to remain dull We expect the company to report 2Q22 net profit at Bt123m (-53%YoY -51%QoQ). Disappointed earnings should be pressured by contraction in gross profit
QoQ drop in revenue should be by content sales that normalized from high base in 1Q22 while revenue from production services shall fall by20%QoQto Bt100m given lower number of contents


<ul>
<li>We anticipate channel ONE average all day rating to climb back to top-5 tier channel by 2H22after fell down to no.7 in 1Q22.A recovery in rating will instantly benefit group </li>
<li>We expect the company to report 1Q22 net profit at Bt219m (+13%YoY +7%QoQ), the highest level in the past three quarter.</li>
<li>NEE still hold strong position in the digital TV industry with high potential growth of contents distribution via online platforms, other businesses that started to contribute great portion of profit</li>
</ul>


We anticipate channel ONE average all day rating to climb back to top-5 tier channel by 2H22after fell down to no.7 in 1Q22.A recovery in rating will instantly benefit group 
We expect the company to report 1Q22 net profit at Bt219m (+13%YoY +7%QoQ), the highest level in the past three quarter.
NEE still hold strong position in the digital TV industry with high potential growth of contents distribution via online platforms, other businesses that started to contribute great portion of profit


ONEE: Expect Earnings to Grow YoY and QoQ in 1Q22

<ul>
<li>We reiterate ONEE with a BUY rating, based on a new target price of Bt12.70 (previous TP:11.80)derived from 26.7xPE’22E,which is the average for the stocks in Thailand’s communication services sector</li>
<li>We expect the company to report 4Q21 net profit at Bt221m (-15%YoY +32%QoQ). Excluding deferred tax item in 4Q20, core earnings would grow 17%YoY, all-time high level.</li>
<li>Ads spending via TV look resilient relative to overall media</li>
</ul>


We reiterate ONEE with a BUY rating, based on a new target price of Bt12.70 (previous TP:11.80)derived from 26.7xPE’22E,which is the average for the stocks in Thailand’s communication services sector
We expect the company to report 4Q21 net profit at Bt221m (-15%YoY +32%QoQ). Excluding deferred tax item in 4Q20, core earnings would grow 17%YoY, all-time high level.
Ads spending via TV look resilient relative to overall media


ONEE: Expect Core Earnings to Hit All-Time High Level

<ul>
<li>We initiate coverage of ONEE with a BUY rating, based on a target price of Bt11.80 derived from 25.2xPE’22E,which is the average for the stocks in Thailand’s communication services sector</li>
<li>Most-Diversified media player, Moving from conventional media to online platform</li>
<li>Great ambition to take bigger piece of cake from TV incumbents</li>
</ul>


We initiate coverage of ONEE with a BUY rating, based on a target price of Bt11.80 derived from 25.2xPE’22E,which is the average for the stocks in Thailand’s communication services sector
Most-Diversified media player, Moving from conventional media to online platform
Great ambition to take bigger piece of cake from TV incumbents


ONEE: Long-Term Goal to Become No. 1 in the Thai TV Industry

Thailand

The One Enterprise Public Company Limited operates as an entertainment company. The Company focuses on copyright management, media production, and related related businesses. One Enterprise serves customers worldwide.

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One Enterprise Public Co Ltd (ONEE TB)

ONEE : Accumulate on Weakening Earnings Outlook

The company continues to gain make share in zero-growth digital TV industry as its TV rating climbed to 3rd place in terms of all-day rating in...

Pi Securities PCL, Thailand

ONEE : Accumulate on Weakening Earnings Outlook

Maintain BUY for ONEE but cut target price to Bt11.60. (Previous TP: 12.70) after revised down earnings by 13% in 2022E due to slow recovery in TV...

Pi Securities PCL, Thailand

ONEE: Expect Earnings to Grow YoY and QoQ in 1Q22

e anticipate channel ONE average all day rating to climb back to top-5 tier channel by 2H22 after fell down to no. 7 in 1Q22. A recovery in rating...

Pi Securities PCL, Thailand

ONEE: Expect Core Earnings to Hit All-Time High Level

We reiterate ONEE with a BUY rating, based on a new target price of Bt12.70 (previous TP:11.80) derived from 26.7xPE’22E, which is the average for...

Pi Securities PCL, Thailand

ONEE: Long-Term Goal to Become No. 1 in the Thai TV Industry

We initiate coverage of ONEE with a BUY rating, based on a target price of Bt11.80 derived from 25.2xPE’22E, which is the average for the stocks in...

Pi Securities PCL, Thailand

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