On Tuesday at 11:05 AM (Bangkok time), the share price of Plan B Media Public Company Limited (SET: PLANB) advanced by 3.94% or THB 0.25 to THB 6.60, with a trading value of THB 300.80 million.
Krungsri Securities (KSS) wrote that PLANB has acquired an additional 1,126 million newly issued shares in iCare, valued at THB 860 million at a price of THB 0.764 per share. This transaction will result in PLANB holding a 46.28% stake in iCare after the capital increase, with Com7 Public Company Limited (SET: COM7) also holding a 46.28% stake.
The purpose of the investment is to generate long-term returns from the mobile and electronic device insurance business, through both operating performance and dividends, while also leveraging synergies with iCare by utilizing PLANB’s strengths in advertising to broaden the customer base and increase sales channels.
This acquisition is subject to approval by the shareholders’ meetings of COM7 and iCare, as well as the Office of Insurance Commission (OIC). The process is expected to be completed by the end of 2026.
Krungsri maintains a positive view on PLANB’s investment in iCare, seeing a potential for the company to recognize approximately THB 200 million in profits annually—representing an upside of 13% to 2027 earnings. Even if 100% of the funding comes from loans at an interest rate of 3.87% (based on the COM7 deal), the cost would amount to only THB 33 million per year, leaving approximately THB 170 million in incremental profit (an upside of around 11%).
The purchase price represents a P/E ratio of only 6x, lower than the insurance sector average of 9x. Full loan utilization would result in an interest-bearing D/E ratio of about 0.76x, which still reflects a strong financial position and ongoing growth potential. The profit-sharing estimate of THB 200 million per year is based on iCare’s net profit of THB 219 million for 1H26 and PLANB’s 46% stake.
Krungsri reiterates a ‘Buy’ recommendation for PLANB, with a target price of THB 8.10 per share (DCF, WACC 8.1%). PLANB remains a top pick in the sector due to (1) continued growth potential in the out-of-home media business, which is less affected by changing consumer behavior compared to TV media; (2) sustained momentum in the RWS boxing business, expected to be a key growth driver; (3) potential synergies with COM7, supporting future profit upside; and (4) positive catalysts from the iCare investment, contributing an upside of around 11-13% to 2027 profits.
PLANB’s net profit, excluding the iCare deal, is forecast to grow by 14% year-on-year in 2026 and by 25% year-on-year in 2027, driven by profit contributions from COM7, supporting strong profit growth.
