Introduction to Thailand’s Media Landscape

In this comprehensive analysis, we explore the current state and future prospects of Thailand’s media sector, focusing on key players such as MAJOR, PLANB, BEC, and ONEE. The sector is witnessing a shift with traditional media channels experiencing slower growth, while internet, cinema, and out-of-home (OOH) media are recovering robustly.

MAJOR: A Blockbuster Year Ahead

MAJOR Cineplex is poised for a remarkable year in 2025 with anticipated earnings growth of 35% year-over-year to Bt981 million. This growth is driven by a strong lineup of blockbuster releases and the resurgence of local film production. Management predicts that ticket sales will return to pre-COVID-19 levels, with local movies expected to significantly contribute to this growth. The release of major titles such as “Captain America: Brave New World” and “Avatar 3” further bolsters this optimistic outlook.

The recommendation for MAJOR remains a BUY, with a target price set at Bt19.00, based on 2025F EPS and a 16x PE, aligning with its three-year mean. This optimism is supported by the company’s robust performance in both blockbusters and local films, positioning it less impacted by slower adex improvement compared to its peers.

PLANB: Dominance in the OOH Media Space

PLANB continues to exhibit promising growth potential, with earnings projected to rise by 7% year-over-year to Bt1,155 million in 2025. The company’s stronghold in the domestic market, with a 70% share, underpins its sustained growth. PLANB benefits from increasing advertising expenditure driven by economic recovery and GDP growth, alongside rising mobility that boosts demand for OOH media.

Analysts maintain a BUY recommendation for PLANB, with a target price of Bt9.00, utilizing the DCF methodology. The company’s strategic shift towards digital media in high-traffic areas and its expansion plans are expected to enhance utilization rates and profit margins.

BEC: Earnings Growth through Strategic Restructuring

BEC’s 2025 earnings are anticipated to grow by 14% year-over-year to Bt281 million, primarily driven by cost reductions and improved profit margins. The company has embarked on restructuring efforts, focusing on reducing SG&A-to-sales ratios. However, BEC faces challenges with modest revenue growth due to its heavy reliance on TV advertising, which constitutes approximately 80% of its revenue.

The recommendation for BEC is downgraded to HOLD, with a target price of Bt4.50, reflecting the sluggish improvement in TV adex. Despite restructuring efforts, the absence of new growth catalysts warrants a cautious outlook.

ONEE: A Leader in Premium Content

ONEE is expected to see moderate earnings improvement in 2025, with a 14% year-over-year rise to Bt623 million. The company’s leadership in premium content tailored for diverse audiences has facilitated consistent TV advertising growth. Additionally, ONEE’s expansion into idol marketing and content rights sales to OTT platforms like Netflix and Disney+ supports its revenue diversification.

Analysts maintain a BUY recommendation for ONEE, with a target price of Bt4.81, based on its five-year PE mean. The company’s strategic diversification and strong content portfolio position it well for future growth despite industry challenges.

Conclusion

The media sector in Thailand presents a mixed landscape, with certain segments like OOH and cinema showing robust growth prospects. Companies like MAJOR and PLANB are well-positioned to capitalize on these trends, while traditional TV broadcasters like BEC and ONEE are adapting through strategic diversification. Investors are advised to focus on selective plays within the sector, as highlighted by UOB Kay Hian’s December 2024 report.