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

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Equity Bottom-Up

<ul>
<li>Maintain BUY recommendation for PLANB, and target price of Bt7.80. Out-of-home media (80% of the company’s revenue) has been outperforming the media industry in terms of budget spending</li>
<li>Expect earnings to drop QoQ before hit 2022 high in 4Q22 Media revenue is expected to touch all-time high at Bt1.3bn(+101%YoY +1%QoQ) in 3Q22 supported by utilization rate that expected</li>
<li>YoY improvement in net profit will be due to solid revenue recovery in media business.  QoQ contraction should be pressured by heavy expenses incurred from major maintenance and aforementioned factors</li>
</ul>


Maintain BUY recommendation for PLANB, and target price of Bt7.80. Out-of-home media (80% of the company’s revenue) has been outperforming the media industry in terms of budget spending
Expect earnings to drop QoQ before hit 2022 high in 4Q22 Media revenue is expected to touch all-time high at Bt1.3bn(+101%YoY +1%QoQ) in 3Q22 supported by utilization rate that expected
YoY improvement in net profit will be due to solid revenue recovery in media business.  QoQ contraction should be pressured by heavy expenses incurred from major maintenance and aforementioned factors


PLANB : Expect Solid Earnings to Persist Throughout 2023’’

<ul>
<li>Maintain BUY recommendation for PLANB, and target price of Bt7.80.  The company report 2Q22 net profit at Bt174m, the highest level in the past ten quarter.</li>
<li>Solid earnings from 2Q22 and onwards until year ended Media revenue hit all-time high at Bt1.3bn (+67%YoY +30%QoQ) supported by media capacity that expands 18%QoQ to Bt2.3bn</li>
<li>Engagement Marketing business post revenue at Bt284m. +3%YoY +56%QoQ) while contributed 20% of total revenue. YoY and QoQ increase were due to an increase in revenue from BNK48</li>
</ul>


Maintain BUY recommendation for PLANB, and target price of Bt7.80.  The company report 2Q22 net profit at Bt174m, the highest level in the past ten quarter.
Solid earnings from 2Q22 and onwards until year ended Media revenue hit all-time high at Bt1.3bn (+67%YoY +30%QoQ) supported by media capacity that expands 18%QoQ to Bt2.3bn
Engagement Marketing business post revenue at Bt284m. +3%YoY +56%QoQ) while contributed 20% of total revenue. YoY and QoQ increase were due to an increase in revenue from BNK48


PLANB : Earnings Hit 10-Quarter High in 2Q22, Above Market and Our

<ul>
<li>Investment in troubling crypto exchange‘Zipmex Asia’ might create short-term negative sentiment for the company given its own minor investment exposure worth US$2m and concern over advertising budget cut by several </li>
<li>Solid earnings from 2Q22 and onwards. Media revenue is expected to hit all-time high at Bt1.25bn (+59%YoY +25%QoQ) supported by media capacity that expands 18%QoQ to Bt2.3bn mainly from Aqua </li>
<li>Engagement Marketing (20% of total revenue) is expected to be at Bt284m. (-9%YoY +37%QoQ) YoY drop was due to high base as there were revenue from marketing rights management </li>
</ul>


Investment in troubling crypto exchange‘Zipmex Asia’ might create short-term negative sentiment for the company given its own minor investment exposure worth US$2m and concern over advertising budget cut by several 
Solid earnings from 2Q22 and onwards. Media revenue is expected to hit all-time high at Bt1.25bn (+59%YoY +25%QoQ) supported by media capacity that expands 18%QoQ to Bt2.3bn mainly from Aqua 
Engagement Marketing (20% of total revenue) is expected to be at Bt284m. (-9%YoY +37%QoQ) YoY drop was due to high base as there were revenue from marketing rights management 


PLANB : Expect Earnings to Hit 10-Quarter High in 2Q22

<ul>
<li>We expect the company’s earnings to expand YoY in every quarter of 2022 which will be supported by strong recovery in a media revenue together with solid operating margin</li>
<li>Bt250m per year after the asset acquisition in 2021. •Expect the company to report net profit in 1Q22 at Bt90m (+142%YoY -41%QoQ) YoY expansion will be due to a 20% </li>
<li>Media revenue is expected to grow 31%CAGR in 2022-23E, driven by revenue recognition of new media capacity in digital, static segments (mainly from Aqua), and, retail media in 7-eleven stores</li>
</ul>


We expect the company’s earnings to expand YoY in every quarter of 2022 which will be supported by strong recovery in a media revenue together with solid operating margin
Bt250m per year after the asset acquisition in 2021. •Expect the company to report net profit in 1Q22 at Bt90m (+142%YoY -41%QoQ) YoY expansion will be due to a 20% 
Media revenue is expected to grow 31%CAGR in 2022-23E, driven by revenue recognition of new media capacity in digital, static segments (mainly from Aqua), and, retail media in 7-eleven stores


PLANB: Solid Performance for OOH Business Throughout 2022

<ul>
<li>We believe PLANB’s acquisition of media business from AQUA PCL at total cost of Bt2.9bn will create value accretive for the company as it purchases at PE multiple of 16x-18x </li>
<li>2022 to be harvesting period after heavy CAPEX investment in the past two years ,which also included the largest deal on Aqua’s assets.</li>
<li>Media revenue is expected to grow 35%CAGR in 2022-23E, driven by revenue recognition of new media capacity in digital, static segments (mainly from Aqua), and, retail media in 7-eleven stores.</li>
</ul>


We believe PLANB’s acquisition of media business from AQUA PCL at total cost of Bt2.9bn will create value accretive for the company as it purchases at PE multiple of 16x-18x 
2022 to be harvesting period after heavy CAPEX investment in the past two years ,which also included the largest deal on Aqua’s assets.
Media revenue is expected to grow 35%CAGR in 2022-23E, driven by revenue recognition of new media capacity in digital, static segments (mainly from Aqua), and, retail media in 7-eleven stores.


PLANB: Acquisition of New OOH Media Capacity Seems Worthwhile

Thailand

Plan B Media Public Company Limited is a leading provider of out-of-home advertising services in Thailand, offering diverse media platforms including transit, classic, digital, retail, and airport media. The company also engages in engagement marketing, encompassing sports marketing and artist management. Plan B Media was established in 2005 and is headquartered in Bangkok, Thailand.

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Plan B Media (PLANB TB)

PLANB : Expect Solid Earnings to Persist Throughout 2023’’

Maintain BUY recommendation for PLANB, and target price of Bt7.80. Out-of-home media (80% of the company’s revenue) has been outperforming the...

Pi Securities PCL, Thailand

PLANB : Earnings Hit 10-Quarter High in 2Q22, Above Market and Our

Maintain BUY recommendation for PLANB, and target price of Bt7.80. The company report 2Q22 net profit at Bt174m, the highest level in the past ten...

Pi Securities PCL, Thailand

PLANB : Expect Earnings to Hit 10-Quarter High in 2Q22

Investment in troubling crypto exchange ‘Zipmex Asia’ might create short-term negative sentiment for the company given its own minor investment...

Pi Securities PCL, Thailand

PLANB: Solid Performance for OOH Business Throughout 2022

We expect the company’s earnings to expand YoY in every quarter of 2022 which will be supported by strong recovery in a media revenue together with...

Pi Securities PCL, Thailand

PLANB: Acquisition of New OOH Media Capacity Seems Worthwhile

We believe PLANB’s acquisition of media business from AQUA PCL at total cost of Bt2.9bn will create value accretive for the company as it purchases...

Pi Securities PCL, Thailand

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