On Wednesday at 11:22 AM (Bangkok time), the share price of Plan B Media Public Company Limited (SET: PLANB) rose by 4.31% or THB 0.20 to THB 4.84, with a trading value of THB 498.43 million.
Bualuang Securities (BLS) noted that PLANB’s investment of an 11% stake in COM7 is reminiscent of GULF’s initial investment in INTUCH, citing the mutually beneficial nature of this deal. According to Bualuang, PLANB will gain a new growth driver, with the acquisition expected to deliver earnings-accretive benefits of approximately THB 200 million, which implies a 20% upside per year. Additionally, dividends derived from COM7 could help offset interest expenses.
From COM7’s perspective, Bualuang points out that the partnership brings in an active shareholder with strong data crunching and analytical capabilities, which could potentially be leveraged to boost sales.
Kasikorn Securities (KS) expressed a slightly positive view on the transaction from a financial perspective, noting that moderate leverage is expected to enhance the capital structure. The investment is likely to increase earnings—since PLANB acquired the COM7 stake at a PER of approximately 14x, lower than PLANB’s own trading PER of around 18x.
However, Kasikorn cautions that this acquisition involves a significant capital outlay in a business outside PLANB’s core out-of-home (OOH) media advertising operations. Management has yet to demonstrate clear synergies resulting from the deal. Additionally, increased debt could reduce PLANB’s financial flexibility for future investments.
While the deal is considered acceptable from a financial standpoint, Kasikorn believes it currently lacks sufficient strategic attractiveness. Should PLANB be able to demonstrate clearer synergies or generate additional returns beyond dividend income, Kasikorn sees potential upside for the company.
Kasikorn maintains a ‘Buy’ recommendation for PLANB with a target price of THB 5.55 per share, expecting the transaction to provide around a 5% upside to its 2027 net profit forecast, due to net dividend income and financing costs. The average purchase cost of COM7 shares for PLANB stands at THB 27.44 per share, which is below the brokerage’s target price for COM7 at THB 28.80 per share.
Key catalysts include greater clarity on potential synergies from the investment and, separately, a mass transit fixed-fare policy (THB 20/40) anticipated for 2027, which could result in a further 3-6% upside to core profit estimates due to increased ridership and higher revenue contributions from VGI-managed media assets.
