Kiatnakin Phatra Securities (KKPS) upgraded its price target for Plan B Media Pcl. (SET: PLANB) shares from THB9.10 to THB10.90 on the prospect of a strong profits recovery in 2023 and 2024.
It is anticipated that PLANB’s 2Q23 pre-exceptional profit will be THB200 million, an increase of 15% year-over-year and 33% quarter-over-quarter. The brokerage anticipates a rise in media asset utilization to 67%-69% from 65% in 1Q23 as a result of the reopening, with engagement revenue growing at a slower pace in the mid-single digit rate YoY/QoQ due to the slowdown in music revenue from the high base.
As for the EBIT margin, KKPS expects to improve from 14% in 1Q23 to 16% in 2Q23 based on the fixed cost structure.
PLANB said during the Thailand Investment Conference call that it was considering raising the advertising rate of certain locations by the high single digit rate in 2H23 if demand proves resilient.
Regarding changes with Thailand’s Football Association, KKPS does not foresee any direct impact on PLANB, as the media company generates approximately THB200 million in annual net revenue from managing the FA Thailand’s sponsorship revenue, but is not involved in broadcasting rights/revenue.
KKPS maintains a “BUY” rating on PLANB with an upgraded target price of THB10.90.
