Key Takeaways/ Results Preview 13 Jun 2016
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BUY
2016 TP: Bt48.00
Closing price: Bt39.50 Upside/downside: +22%
Sector Media & Publishing
Paid-up shares (shares mn) 417.23
Market capitalization (Bt bn) 16.48
Free float (%) 33.75
12-mth daily avg. turnover (Bt mn) 24.34
12-mth trading range (Bt) 47.25/30.50
Major shareholders (%)
Prapas Cholsaranon 27.51
Phanya Nirunkul 27.39
Mindo Asia Investments 10.74
Thai NVDR Co., Ltd. 4.97
Dentsu Media (Thailand) 3.00
Thailand Research Department
Ms. Sukanya Leelarwerachai
License, No. 68790
Workpoint Entertainment PCL. (WORK)
So far so good despite industry slowdown
► Analyst meeting on 10 Jun 2016.
► 2Q16 earnings expected to rise QoQ and YoY driven by solid
TV rating.
► Maintain BUY recommendation with 2016 TP of Bt48.00.
2Q16 earnings expected to rise both QoQ and YoY
Despite the second quarter normally being the high season for
advertising spending, the gloomy outlook for the advertising
industry is still an overhang. However, WORK seems to continue
to do well with improvements in revenue and earnings YoY. During
2Q16, the company successfully adjusted its average ad rate up to
Bt49,000/min from Bt34,000/min in 2Q15, up 44% YoY, while
utilization rate of ad time on Workpoint TV should reach 80%, down
from 82% in 2Q15. Additionally, ratings on WORK’s top rated TV
programs in 1H16, such as I Can See Your Voice and Mai Tong
Kum Dek, continue to improve which gives the company the
flexibility to adjust ad rates as these are not included in bundle
packages. Meanwhile, broadcasting the FIVB volleyball
tournament during May further boosted its average TV rating to a
record high 1.42, up from 1.19 in the prior month. We expect
operating revenue to rise 49% QoQ and 20% YoY, driven by the
increased ad rate for its digital TV business. Dinosaur Planet
located at EM District Bangkok, which the company invested 30%
of the total project cost, has also been well received. WORK is
expected to book ~Bt15mn in profit sharing from this project in this
quarter. As a result, we forecast 2Q16 earnings of Bt101mn, up
251% QoQ and 7% YoY.
Continued improvement in content in 2H16
This year WORK will reap the benefits of its investment in digital
TV supported by strength to strength on Workpoint TV’s ratings. In
the second half, WORK will continue to improve and add new
content such as Thailand Debate, GOAL Reality Football which is
a branded TV contents and King of Mask Singer, which is a foreign
format. The company plans to expand the broadcast time for Thai
drama series from only Mon-Tue to Thu-Fri and also sell some
content to LINE TV to further boost revenue from online media.
Maintain BUY with 16TP of Bt48.00
WORK is still our top pick in digital TV as it is reaping the benefits
of its investment, first year’s ratings together with nonstop
innovation to improve content and diversify risk on operating
revenue. We maintain a BUY recommendation with 16TP of
Bt48.00, derived from the DCF method (WACC 10.2%, Terminal
growth 2%).
Financial Highlights
(Year to Dec) 2014 2015 2016E 2017E
Revenue (Btmn) 2,053 2,388 3,022 3,405
Net Profit (Btmn) (16) 164 372 427
EPS (Bt) (0.04) 0.39 0.89 1.02
EPS Growth (%) -104% 1122% 128% 15%
P/E (x) n.a. 95.6 42.0 36.7
P/BV (x) 7.6 5.6 5.3 5.1
DPS (Bt) 0.44 0.34 0.59 0.68
Div. Yield (%) 1% 1% 2% 2%
ROE (%) -1% 6% 13% 14%
Source: SET, AWS estimates
Key Takeaways/ Results Preview 13 Jun 2016
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Figure 2: TV Programs Highlight in 2H16
Figure 3: Concerts & Plays business in 2Q-4Q 2016
Source: Company presentation
Figure 1: WORK's 2Q16 earnings preview
Unit : Btmn 2Q15 3Q15 4Q15 1Q16 2Q16E %QoQ %YoY 2015 2016E %YoY
Operating revenue 679 640 641 547 813 49% 20% 2,388 3,022 27%
Television Programs 531 589 553 496 743 50% 40% 2,079 2,715 31%
Event Marketing 77 5 25 29 30 5% -61% 108 113 5%
Concerts & Plays 67 43 59 21 35 63% -48% 168 180 7%
Others 5 3 4 1 5 572% 0% 33 13 -61%
Cost of sales and services 386 366 338 319 429 35% 11% 1,372 1,709 25%
Gross Profit 293 274 303 228 384 68% 31% 1,015 1,313 29%
SG&A 160 187 253 181 244 35% 52% 754 829 10%
Operating profit 133 87 45 47 140 196% 5% 261 484 85%
Income taxes expense (Income) 27 14 6 6 22 251% -18% 45 94 106%
Net profit 94 58 8 29 101 251% 7% 164 372 128%
EPS (Bt/share) 0.23 0.14 0.02 0.07 0.24 251% 7% 0.39 0.89 128%
Gross Profit Margin (%) 43% 43% 47% 42% 47% 5 pps 4 pps 43% 43% -
Operating Profit Margin (%) 20% 14% 7% 9% 17% 8 pps - 3 pps 11% 16% 5 pps
Net Profit Margin (%) 14% 9% 1% 5% 12% 7 pps - 2 pps 7% 12% 5 pps
Source: SET, AWS estimates
(Year end: Dec)
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CG Report
Corporate Governance Report disclaimer
The disclosure of the survey result of the Thai Institute of Directors
Association (“IOD”) regarding corporate governance is made pursuant
to the policy of the Office of the Securities and Exchange Commission.
The survey of the IOD is based on the information of a company listed
on the Stock Exchange of Thailand and the Market for Alternative
Investment disclosed to the public and able to be accessed by a
general public investor. The result, therefore, is from the perspective of
a third party. It is not an evaluation of operation and is not based on
inside information.
The survey result is as of the date appearing in the Corporate
Governance Report of Thai Listed Companies. As a result, the survey
result may be changed after that date, Asia wealth Securities Company
Limited does not conform nor certify the accuracy of such survey result.
Score Range Number of Logo Description
90 – 100
80 – 89
70 – 79
60 – 69
50 – 59
Below 50
No logo given
Excellent
Very Good
Good
Satisfactory
Pass
N/A
Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (IOD) in 2015.
ADVANC BAFS BCP BIGC BTS CK CPN DRT DTAC DTC EASTW EGCO GRAMMYHANA HMPRO INTUCH IRPC IVL KBANK KCE KKP KTB LHBANK LPN MCOT MINTMONO NKI PHOL PPS PS PSL PTT PTTEP PTTGC QTC RATCH ROBINS SAMARTSAMTEL SAT SC SCB SCC SE-ED SIM SNC SPALI THCOM TISCO TKT TMBTOP VGI WACOAL
AAV ACAP AGE AHC AKP AMATA ANAN AOT APCS ARIP BMCL BOL BROOKBWG CENTEL CFRESH CHO CIMBT CM CNT COL CPF CPI CSL DCC DELTADEMCO ECF EE ERW GBX GC GFPT GLOBAL GUNKUL HEMRAJ HOTPOT HYDRO ICCICHI INET IRC KSL KTC LANNA LH LOXLEY LRH MACO MBK MC MEGAMFEC NBC NCH NINE NSI NTV OCC OGC OISHI OTO PAP PDI PEPG PJW PM PPP PR PRANDA PREB PT PTG Q-CON QH RS S&JSABINA SAMCO SCG SEAFCO SFP SIAM SINGER SIS SITHAI SMK SMPC SMT SNPSPI SSF SSI SSSC SST STA STEC SVI SWC SYMC SYNTEC TASCO TBSPTCAP TF TGCI THAI THANA THANI THIP THRE THREL TICON TIP TIPCO TKTKS TMI TMILL TMT TNDT TNITY TNL TOG TPC TPCORP TRC TRU TRUETSC TSTE TSTH TTA TTCL TTW TU TVD TVO TWPC UAC UT UVVNT WAVE WINNER YUASA ZMICOVNT WAVE WINNER YUASA ZMICO
2S AEC AEONTS AF AH AIRA AIT AJ AKR AMANAH AMARIN AP APCOAQUA AS ASIA AUCT AYUD BA BEAUTY BEC BFIT BH BIG BJC BJCHIBKD BTNC CBG CGD CHG CHOW CI CITY CKP CNS CPALL CPL CSCCSP CSS CTW DNA EARTH EASON ECL EFORL ESSO FE FIRE FOCUS FORTHFPI FSMART FSS FVC GCAP GENCO GL GLAND GLOW GOLD GYT HTC HTECHIEC IFEC IFS IHL IRCP ITD JSP JTS JUBILE KASET KBS KCAR KGIKKC KTIS KWC KYE L&E LALIN LHK LIT LIVE LST M MAJOR MAKROMATCH MATI MBKET M-CHAI MFC MILL MJD MK MODERN MOONG MPG MSC MTIMTLS NC NOK NUSA NWR NYT OCEAN PACE PATO PB PCA PCSGH PDGPF PICO PL PLANB PLAT PPM PRG PRIN PSTC PTL PYLON QLT RCIRCL RICHY RML RPC S SALEE SAPPE SAWAD SCCC SCN SCP SEAOIL SIRISKR SMG SOLAR SORKON SPA SPC SPCG SPPT SPVI SRICHA SSC STANLY STPISUC SUSCO SUTHA SYNEX TAE TAKUNI TCC TCCC TCJ TEAM TFD TFI TICTIW TLUXE TMC TMD TOPP TPCH TPIPL TRT TSE TSR UMI UP UPFUPOIC UREKA UWC VIBHA VIH VPO WHA WIN XO
Source: Thai Institute of Directors (IOD)
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CG Report
ขอมล Anti-Corruption Progress Indicator ของบรษทจดทะเบยน
ระดบ 1ACD AEONTS AFC AIRA AJ ALUCON AMC AQUA ARIP AUCT BAT-3K BIG BJCBLISS BMCL BOL BRR BSBM CBG CCET CCN CGD CMR CPH CSC CSPCTW DCON DRACO DSGT DTCI E EMC ESSO FOCUS FSMART GIFT GLANDGRAND GUNKUL HFT HTECH IHL ILINK ITD JSP KDH KTIS KTP LEE LSTMAJOR MATCH MAX M-CHAI MDX MIDA ML MPIC NC NEP NNCL NWR OHTLPICO PK PL PPM PRAKIT PRECHA PRIN PSTC PYLON RAM RICH RS SANKOSAUCE SAWAD SAWANG SCN SEAFCO SF SHANG SIRI SMART SMM SOLAR SPACK SPGSPPT SPVI STA STAR SVH SVOA SWC TAPAC TC TCCC TCJ TCOAT THTKS TNH TNPC TPA TPAC TPOLY TRC TRUBB TSE TTA TTI TTL TTTMTWP TWZ U UMS UPA UPOIC UTP UVAN VARO VI VIBHA VIH VTEWG
ระดบ 22S ABICO AF AKP AMARIN AMATA AOT APCO AYUD BEAUTY BFIT BH BKDBLAND BTNC CCP CI CSR CSS EFORL EPCO FE FNS FVC GEL GLOBALHEMRAJ IEC IFS INET JUTHA KASET KCAR KKC KSL L&E LALIN LTX MMALEE MBK MBKET MEGA MK MPG MTLS NCH NCL NPP OCC OCEAN PBPCA PRINC QH ROCK RPC S&J SGP SIAM SIS SKR SMG SMIT SORKONSUSCO TAKUNI TEAM TF TIC TIP TIPCO TMC TMI TPP TRT TRU TRUETSC TSI TTW TVD TVO UKEM UNIQ UWC VNG WIIK WIN XO
ระดบ 3AABC ACAP ADVANC AEC AGE AH AIE AMANAH ANAN AP APCS APURE ASASIA ASIAN ASIMAR BIGC BROOK BTS BWG CEN CENTEL CFRESH CHARAN CHO CHOTICM CNT COL CPALL CPF CPI CPL DELTA DEMCO DIMET DNA DTAC EAECF EE EVER FPI GBX GC GFPT GLOW HMPRO HOTPOT ICC ICHI IFECINOX INSURE IRC JAS JTS JUBILE KC KTC KYE LHK LPN LRH MAKROMC MCOT MFC MFEC MINT MJD MONO MOONG NBC NDR NINE NMG NSINTV OGC PACE PCSGH PDI PG PHOL PLAT PPS PR PRANDA PREB PSQLT RATCH RML ROBINS ROJNA RWI SAMCO SCCC SCG SEAOIL SE-ED SENA SINGERSITHAI SMK SMPC SPALI SPC SPCG SPI SRICHA SSI STANLY SUPER SVI SYMCSYNEX SYNTEC TASCO TCMC TFI THAI THRE THREL TICON TKT TLUXE TNL TPCORPTMILL TMT TSTE TSTH TTCL TU TVI UOBKH UREKA VGI VNT WACOAL WHAZMICO
ระดบ 3BAAV AHC AI AIT AKR ARROW ASK BA BDMS BEC BECL BJCHI BUICGH CHG CHOW CIG CITY CK CKP COLOR CWT EARTH EASON EPG F&DFANCY FIRE FMT FORTH GENCO GL GOLD GPSC GRAMMY HYDRO IRCP IT JCTKCM KWC LH LIT LOXLEY MACO MANRIN MATI MODERN MSC NOBLE NOK NPKNUSA OISHI OTO PAF PAP PATO PF PJW PLANB PLE POLAR PRG PTLQ-CON QTC RCI S11 SALEE SAM SAMART SAMTEL SAPPE SC SCP SFP SIMSLP SMT SPA SPORT SSC SST STEC STPI SUC SUTHA T TAE TBSPTCC TFD TGCI TGPRO THANA THIP TIW TK TMW TNDT TOPP TPC TPCHTPIPL TSR TT TYCN UAC UBIS UEC UMI UP UPF UT UV VPOWAVE WINNER YUASA
ระดบ 4ASP BAFS BANPU BAY BBL BKI BLA CIMBT CNS CSL DCC DRT DTCEASTW ECL EGCO ERW FSS GCAP HANA HTC INTUCH IRPC IVL KBANK KCEKGI KKP KTB LANNA LHBANK MTI NKI PSL PTG PTTEP SABINA SCB SNCSNP SSF SSSC TCAP THCOM TISCO TIMB TMD TNITY TOG
ระดบ 5BCP CPN GYT PE PM PPP PT PTT PTTGC SAT SCC THANI TOP
ไมเปดเผยหรอไมมนโยบายA ACC AJD AQ BCH BGT BROCK BSM BTC CHUO CPR CRANE EICFER JMART JMT KAMART KBS KIAT LDC MBAX MCS METCO NEW NEWS NYTPAE PDG PERM PMTA POST RCL RICHY ROH S SIMAT TCB TR TSFTVT WORKหมายเหตระดบ 1 : มนโยบายระดบ 2 : ประกาศเจตนารมณระดบ 3 : มมาตรการปองกน ซงทง 2 กรณ ถอเปนผลการประเมนในระดบเดยวกน
3A : บรษทมการประกาศเจตนารมณเขารวมโครงการ CAC หรอภาค3B : บรษทมค ามน และนโยบายของบรษท แตมไดประกาศเจตนารมณเขารวมโครงการ CAC หรอภาค
ระดบ 4 : ไดรบการรบรองระดบ 5 : ขยายผลสผท เกยวของ
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