In today’s briefing:
- PLANB: Acquisition of New OOH Media Capacity Seems Worthwhile
- GLOBAL: Expect 4Q21 Earnings to Remain Strong QoQ and YoY
- SCC: IPO of SCGC Will Unlock Potential Growth
PLANB: Acquisition of New OOH Media Capacity Seems Worthwhile
- We believe PLANB’s acquisition of media business from AQUA PCL at total cost of Bt2.9bn will create value accretive for the company as it purchases at PE multiple of 16x-18x
- 2022 to be harvesting period after heavy CAPEX investment in the past two years ,which also included the largest deal on Aqua’s assets.
- Media revenue is expected to grow 35%CAGR in 2022-23E, driven by revenue recognition of new media capacity in digital, static segments (mainly from Aqua), and, retail media in 7-eleven stores.
GLOBAL: Expect 4Q21 Earnings to Remain Strong QoQ and YoY
- We reiterate BUY rating for GLOBAL with a lower target price of Bt27.0 (-7% from previous TP) based on 35xPE’22E, average of the Thailand home-improvement subsector
- We expect GLOBAL to report 4Q21 net profit at Bt687m (+82%YoY, +4%QoQ), supported by (1) a solid SSSG at +15%YoY,and (2) gross profit margin expansion from a higher revenue contribution
- YoY decrease in gross profit margin caused by a higher revenue contribution from low margin products and an increase in marketing promotion.
SCC: IPO of SCGC Will Unlock Potential Growth
- Maintain BUY rating, with a TP of Bt445, based on 10.6xPE’22E,which is Asia ex-Japan Materials Sector. The recent SCGC spin-off deal provides a catalyst path for sweet entry to accumulate
- Unlock value potential through the SCGC spin-off, growth prospects from Vietnam & Indonesia, Vinyl, green polymer, and capture new megatrends.
- Uphold positive on 22E outlook, upon demand recovery for both CBM and packaging units post-lockdown, along with higher chemical prices.
Before it’s here, it’s on Smartkarma
