KGI Securities noted in its report regarding Plan B Media Public Company Limited (SET: PLANB) that the company is increasing its out-of-home (OOH) media capacity, positioning itself to weather ongoing economic headwinds and a decline in consumer spending.
The company’s strategy, centered on expanding its media assets and adjusting pricing, is expected to drive a year-on-year capacity increase of 9% and a quarter-on-quarter rise of 5%, bringing total media capacity to THB 2.6 billion for the second quarter of 2025.
Operationally, PLANB’s media utilization rate reached 65-70% in April, with an anticipated improvement to 70-75% for the second quarter—though it still trails the 76% and 68% levels seen in 4Q24 and 1Q25, respectively.
The upward trend is partially attributed to PLANB’s recent collaboration with VGI Public Company Limited (SET: VGI), having assumed responsibility for the sale and management of VGI’s advertising media in May. This partnership is expected to bolster both PLANB’s revenue and gross profit margins through the launch of new client packages.
However, the firm’s engagement marketing segment is forecast to soften in the second quarter compared with the previous year and quarter, due to the absence of major artist events and global rights revenues, such as those from the Olympic Games in 2024.
A more robust contribution from sports marketing is projected to begin in the third quarter of 2025, as PLANB will start recognizing revenue from its management of the English Premier League and FA Cup marketing rights, with these contracts set to begin in August. Until further details are available, these anticipated contributions are not yet factored into earnings projections by KGI.
On the M&A front, PLANB has postponed its planned 50% acquisition of Hello Bangkok LED Co., Ltd. from Roctec Global Public Company Limited (SET: ROCTEC) by two and a half years, now targeting completion in August 2027. Meanwhile, the acquisition of a 50% stake from Win Harvest is still going ahead and expected to conclude by August 2025, after which Hello LED will become a PLANB subsidiary.
The analyst maintains a neutral stance on the delay, noting that while revenue contributions from the deal will be deferred, a reduction in interest rate and increased flexibility could offset near-term negatives—particularly given uncertainties around the economic outlook. The delay is anticipated to impact PLANB’s 2025 earnings by approximately 1-2%.
KGI Securities reaffirms PLANB’s 2025 profit outlook at THB 1.1 billion, up 8% year-on-year, with further earnings growth to THB 1.2 billion expected in 2026, and retains an ‘Outperform’ rating for the company, holding the 2025 price target steady at THB 6.40. This reflects confidence in the resilience of the OOH media sector and the company’s sound financial standing.
Recent declines in PLANB’s share price, triggered by concerns over the delayed Hello LED acquisition, are already priced in by the analyst, with the stock now trading at a discounted valuation of just 19.6 times.
