Plan B Media: In-depth Company Analysis and Stock Recommendations
Broker Name: UOB Kay Hian
Date of Report: Thursday, 14 November 2024
Company Overview
Plan B Media (PLANB) is a leading provider in out-of-home (OOH) advertising media, offering a diverse array of media formats. The company also operates engagement marketing businesses that leverage its platform to enhance advertising reach.
Stock Data
| GICS sector |
Communication Services |
| Bloomberg ticker |
PLANB TB |
| Shares issued (m) |
4,289.6 |
| Market cap (Btm) |
33,887.6 |
| Market cap (US\$m) |
1,017.1 |
| 3-mth avg daily t’over (US\$m) |
2.5 |
| 52-week high/low |
Bt9.20/Bt6.40 |
Company Results
Recommendation: BUY (Upgraded)
Share Price: Bt7.35
Target Price: Bt9.00
Upside: +31.30%
3Q24 Performance Review
Plan B Media (PLANB) reported 3Q24 earnings of Bt282m, marking an 8% increase year-on-year (yoy) and a 7% increase quarter-on-quarter (qoq). The revenue surged significantly both yoy and qoq, driven primarily by the engagement marketing segment. Despite the strong revenue performance, the gross profit margin dropped due to a lower margin from the engagement marketing revenue.
Key Financials
| Year to 31 Dec (Btm) |
3Q24 |
3Q23 |
2Q24 |
yoy chg (%) |
qoq chg (%) |
| Net turnover |
2,553 |
2,141 |
2,221 |
19.3 |
15.0 |
| Gross profit |
691 |
654 |
710 |
5.5 |
(2.7) |
| EBIT |
434 |
405 |
420 |
7.0 |
3.2 |
| EBITDA |
1,070 |
1,012 |
1,049 |
5.8 |
2.0 |
| Net profit |
282 |
261 |
264 |
8.2 |
7.1 |
| EPS |
0.07 |
0.06 |
0.06 |
8.2 |
7.1 |
| Core profit |
282 |
261 |
264 |
8.2 |
7.1 |
The qoq earnings growth was attributed to robust top-line growth in both the OOH media and engagement businesses, and effective cost control resulting in an improved SG&A-to-sale ratio. However, the overall gross profit margin was pressured due to the low margin in the engagement business.
Revenue Analysis
PLANB reported 3Q24 revenue of Bt2.5b, marking a 19% yoy and 15% qoq increase. The significant increase was driven by the engagement marketing segment, which reported revenue of Bt723m, a 46% yoy and 80% qoq increase. This surge was primarily due to the recognition of Bt427m from managing the broadcasting rights for the 2024 Paris Olympic Games. Despite this, revenue growth from the boxing segment only decreased slightly yoy.
Key Financial Metrics
| Year to 31 Dec (Btm) |
2022 |
2023 |
2024F |
2025F |
2026F |
| Net turnover |
6,590 |
8,365 |
9,254 |
9,296 |
9,529 |
| EBITDA |
3,502 |
3,861 |
4,287 |
4,691 |
5,085 |
| Operating profit |
1,095 |
1,470 |
1,635 |
1,728 |
1,800 |
| Net profit (rep./act.) |
703 |
911 |
1,077 |
1,151 |
1,209 |
| Net profit (adj.) |
682 |
923 |
1,077 |
1,151 |
1,209 |
| EPS (Bt) |
0.2 |
0.2 |
0.3 |
0.3 |
0.3 |
Stock Impact and Future Outlook
Growth in 4Q24 Earnings: Despite an expected slight qoq revenue drop from the absence of Olympic Games revenue, revenue from OOH media is anticipated to rise due to seasonality and the upcoming stimulus policy. Additionally, boxing revenue is expected to increase thanks to a rise in international tourists.
Continued Growth in 2025: Despite a high utilisation rate that already exceeds pre-COVID-19 levels and a strong market share (over 70% of the domestic market), growth in media capacity and utilisation rate is still anticipated. Upcoming projects include adding more digital media, converting static media to digital, and positive sentiment for boxing due to stadium renovations and increased international tourists. Although there is expected weakness in the engagement business’s top-line due to the absence of broadcasting revenue, the total gross profit margin is still expected to rise.
Valuation and Recommendation
Recommendation: Upgraded to BUY with a 2025 target price of Bt9.00. The target price is based on DCF methodology. PLANB is favored for its market leadership and upcoming projects that will increase media capacity and utilisation rate. The recent share price correction is believed to have priced in the slower earnings growth momentum.
DCF Valuation
| Business(es) Value (Btm) |
40,762 |
| Net Debt |
-2,194 |
| Total Value (Btm) |
38,568 |
| Number of shares – basic (m) |
4,290 |
| Fair Value (Bt) |
9.00 |
Environmental, Social, Governance (ESG)
CG Report: 5
SET ESG Rating: AA
Environmental
The company has established a standard framework for environmental management, complying with relevant laws, rules, regulations, and environmental agreements.
Social
PLANB has an Occupational Health and Safety (OHS) policy for all employees, contractors, suppliers, and relevant stakeholders. The Safety Committee and appointed Safety Officers oversee occupational health and safety at the company.
Governance
PLANB has established a business structure, management system, and governance framework that aligns with the good governance principles of the Stock Exchange of Thailand.
