Equity Analysis /
Thailand

Thailand: Media - Selective BUY on stocks with high growth visibility

  • Ad spending rose YoY in Aug

  • OOH eyeball counts for Aug rose significantly

  • Significant recovery expected in 4Q22

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Follow
Bualuang Securities
26 September 2022

In this business environment, media stocks should face pressure as the market inclines towards more cautious ad spending. Almost all TV operators remain in a defensive mode. It’s best to wait for clearer signs of ad revenue recovery.  Out-of-home and cinema players should lead earnings growth in 3Q22-4Q22.  PLANB seems the best play for now, driven by its biz expansion during COVID.

Ad spending rose YoY in Aug

Total ad spending in Aug was Bt8.6bn, up 27% YoY and 3% MoM. Six media categories reported YoY ad expenditure rises—cinema (up 5,000% YoY and 40% MoM), transit (up 82% YoY but down 8% MoM), in-store (up 78% YoY but down 1% MoM), outdoor (up 58% YoY and 1% MoM), radio (up 13% YoY but down 3% MoM), and TV (up 10% YoY and 1% MoM). Total OOH media (outdoor, in-store, and transit media) receipts jumped 68% YoY but were down 3% MoM. Total ad spending in Aug rose YoY from the low base related to COVID-19 last year. Almost all mediums dropped MoM, due to heavy rain.