Analyst Sees Positive toward VGI-GRAMMY Partnership, Recomm. “BUY” at a TP of ฿8.8

Analyst Sees Positive toward VGI-GRAMMY Partnership, Recomm. “BUY” at a TP of ฿8.8

KTB Securities (Thailand) (KTBST) has maintained a “BUY” recommendation on VGI Public Company Limited (VGI) with a target price of ฿8.80/share after joined hand with GRAMMY to add value to O2O solutions.


VGI’s Managing Director said the company has partnered with GRAMMY in music content advertising through VGI’s ad media, comprising in-train wrap, BTS Skytrain’s at-station, and in-train LED screens. The B2C advertising will not only reach the target audience and thereby create the right impact, but the initiation of the new music marketing approach should also widen an opportunity for VGI to seek collaboration with other companies. The partnership with GRAMMY is set to end at YE2020. 


KTBST is positive toward the partnership given a win-win strategy. VGI will optimize its O2O solutions by bundling GRAMMY’s media and contents (digital TV channel, radio, artists) in the packages, and GRAMMY can promote music contents through BTS’s related media, which should boost VGI’s capacity utilization. Although the partnership is set to end at YE2020, there is potential for further collaboration if the music content advertising will receive strong feedback.


KTBST likes VGI as the leading player in the O2O solutions amid bright outlook. KTBST maintains a BUY rating and FY21E target price of B8.80 based on SOTP method. VGI’s share price currently trades at PER of 85.2x and PEG of 1.57x, which remains below our covered media stocks.