BEC World Public Company Limited (BEC) rose ฿0.30/share or 2.34% to ฿13.10/share with a trading value of 171 million baht as of 11:08 local time in Thailand on June 4, 2021.
FSS International Investment Advisory (FSSIA) has given a “BUY” recommendation on BEC with a target price at ฿16.00/share.
FSSIA expected BEC to be the only company in the media sector to have strong earnings growth q-q in 2Q21, due to the additional revenue from three simulcast drama series and the high rating of its news program. FSSIA believed the market still has a conservative view on BEC’s earnings outlook due to the third wave of Covid.
However, FSSIA believed TV adex should remain strong and that BBG consensus will likely upgrade its earnings and TP forecasts after BEC’s 2Q21 results, similar to 4Q20 and 1Q21.
KTBST Securities (KTBST) maintained a BUY recommendation on BEC and raised target price to Bt19.00 based on 2021E PER 44x (formerly Bt12.00 on PER 44x), reflecting a 57% improvement in 2021E earnings.
KTBST had a more positive view from the analyst meeting (19 May 2021), key issues are as follows: 1) Management continued to expand 2021E revenue target +20% YoY, 2) SG&A expenses would decrease significantly from the restructuring and sale of investment in Tero (company with operating loss), 3) 1Q21 income would be the lowest point of the year due to the low season and 2Q21E onwards, there would be more income from simulcast and Family News 3, and 4) Currently, Global Content Licensing secured revenue of 60% of the 2021E target (500 million baht), which most of this income would be in the bottom line.
KTBST revised its 2021E-22 earnings forecast up to 57% and 54%, respectively, due to lower SG&A expenses to reflect lower costs from the reorganization and divestment of Tero investments. 2021E net profit was estimated at 865 million baht, which would be the first turnaround performance in 3 years and the highest profit in 5 years. KTBST believed that the market might have an opportunity to revise its forecast from SG&A expenses which is much lower than expected.