THAILAND EQUITY RESEARCH 

 

Page | 1 | PHILLIP SECURITIES (THAILAND)  

Workpoint Entertainment FY15 earnings growth hit the top rank in digital TV industry 

THAILAND | SET | MEDIA | COMPANY RESULTS BLOOMBERG WORK TB l REUTERS WORK.BK 

4QFY15  earnings  swing  to profit, bringing  FY15  profit  growth  to  the  highest  level  in  the industry WORK reported 4QFY15 net profit of Bt8mn, recovering from a Bt51mn loss the same period a year earlier. An improvement was attributed to stronger operating performance amid lower cost. On normalized basis, operating revenue grew 19.7% y‐y to Bt641mn with TV ad revenue rising 17.4% (audience rating climbed to the third rank in the TV broadcasting industry), and concerts and plays revenue of Bt59mn  (no revenue  from this business segment  in 4QFY14). Cost declined by 8.4% due  to a  lack of airtime  lease as WORK  terminated  its programs on other channels,  then aired  them on  its own digital TV channel since early 2015, and saving production cost. But SG&A expense surged 35%, which was  in  line with higher  revenue, an annual bonus for employees and an increased in HR expense along with business expansion. Other  revenue  and  profit  contribution  from  associates  increased  at  a  robust  pace  while interest expense rose 34.1% due to a change in accounting standard in digital TV business.  For the whole year, earnings recovered  from the prior‐year Bt16mn  loss to Bt164mn profit, which was the best earnings performance in the industry, while core revenue grew 16.3% to Bt2,388mn.  Audience rating stays pat at 3rd rank with popular variety programs and game shows WORK’s  audience  rating  stays  pat  the  third  rank  since  2015  while  its  variety  and music programs, and game shows can captivate audiences against its major counterparts Channel 3 and 7. WORK thus plans to add those kinds of programs in 2016 by remaking and producing new programs, including big format and brand content programs—e.g. (in Thai) SME Tee‐Taek that KBANK is a major sponsor, BAO Young Blood for Carabao, The Angel for Nok Air—and a program that WORK co‐invest with Korea production house “Let Me In Thailand.”   For ad marketing strategy, WORK aims to seal long‐term contract for only 50% of airtime slot so  the company can call  for  rate  increase  if  its  rating climbs. Ad utilization  rate  is  targeted more  than  80%  and  ad  rate  for  very  popular  programs—there  are  4‐5  programs—will  be separated from a normal level.   For showbiz and event management business, WORK intends to organize five stage plays with more than 65 rounds while  its event management will be organized by a JV that WORK will join hand with its partner.  FY16  earnings  projection  downgraded  on  higher‐than‐expected  expense  in  2015,  ‘BUY’ rating maintained with revised target price of Bt42.50 We keep our FY16 core revenue forecast at Bt2,941mn but raise cost and expense assumption to reflect the higher‐than‐expected expense  in 2015. As a result, our net profit projection  is adjusted down from Bt420mn to Bt319mn, which represents growth of 95.2% y‐y. Using DCF method, based on WACC of 9.97% and terminal growth rate of 4%, our target price is reduced from Bt48 to Bt42.50. The upside still looks decent after a drastic drop in WORK shares, and thus we keep our ‘BUY’ rating on the stock. There is a scope of revision as the analyst meeting will be held on March 23.  

         

Ref. No.: CO2016_0230   

Closing Price(Bt) 36.75

Target Price(Bt) 42.50 (+17.12%)

COMPANY DATA

O/S Shares (mn) : 417             

Market Cap. (Btmn) :

Market Cap. (USDmn) :

52‐WK Hi/Lo (Bt) : 49.5/30.5

3M Average Daily T/O (mn) : 0.48

Par Value (Bt) : 1.00

MAJOR SHAREHOLDERS (%)

1. Mr. Prapas Cholsaranon  27.5

2. Mr. Phanya Nirunkul 27.4

3. Mindo Asia Investment Ltd. 10.7

PRICE PERFORMANCE (%)

1MTH 3MTH 1YR

ABS ‐4% ‐15% ‐19%

REL TO SET INDEX ‐9% ‐20% ‐9%

PRICE VS SET INDEX

Source: Bloomberg, PSR

KEY FINANCIALS

FYE Dec FY14 FY15 FY16E FY17E

Sales(Btmn) 2,053 2,388 2,941 3,555

Net Profit(Btmn) ‐16 164 319 480

EPS (Bt) ‐0.06 0.39 0.77 1.15

P/E (X) n.m. 94.2 47.7 32.0

BVPS (Bt) 6.44 6.78 7.01 7.41

P/B (X) 5.7 5.4 5.2 5.0

DPS (Bt) 0.04 0.34 0.54 0.81

Dividend Yield (%) 0.1 0.9 1.5 2.2

ROE  (%) ‐0.99 7.21 11.11 15.97

Source: Company, PSR Est.

**Multiples and yields are based on latest closing price

VALUATION METHOD

DCF (WACC: 9.97%; terminal g: 4.0%)

Siam Tiyanont

Securities Investment Analyst #17970

Tel: 66 2 635 1700 # 483

11 March 2016

15,334                                                   

435                                                          

23 September 2015

Buy (Maintain)

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Mar‐13 Mar‐14 Mar‐15 Mar‐16

WORK TB EQUITY SETI (rebased)

THAILAND EQUITY RESEARCH 

 

 

PHILLIP SECURITIESS (THAILAND) | 2 | P a g e   

Workpoint Entertainment COMPANY RESULTS

Income Statement

Btmn 4Q15 3Q15 4Q14 q‐q+/‐ y‐y+/‐ 2015 2014 y‐y+/‐

Sa le s  and  s e rvi ce s 641 641 536 0.1% 19.7% 2,388 2,053 16.3%

Cos ts  of s a l e s   338 366 369 ‐7.7% ‐8.4% 1,372 1,434 ‐4.3%

Gross profit 303 274 167 10.5% 81.9% 1,015 619 64.0%

Se l l i ng  expenses 63 64 45 ‐1.2% 39.4% 190 168 13.1%

Admini s tra ti ve  expenses 189 123 142 53.7% 33.5% 564 493 14.4%

Operating profit  50 87 ‐21 ‐42.2% 342.0% 261 ‐42 719.9%

Other i ncome 44 ‐4 10 n.m. 342.9% 66 57 16.2%

Ga in/los s  from  a ffi l i a te s 11 5 5 141.4% 137.7% 14 52 ‐72.3%

Other expense 0 0 0 n.m. n.m. 0 0 n.m.

EBIT 105 87 ‐6 20.6% n.m. 342 67 411.1%

Inte res t expens e 94 14 70 553.6% 34.1% 132 101 31.5%

EBT 12 73 ‐76 ‐84.2% 115.2% 210 ‐34 721.5%

Ta xa ti on 6 14 ‐19 ‐54.8% 132.6% 45 ‐19 337.8%

EAT 5 59 ‐57 ‐91.1% 109.2% 164 ‐15 n.m.

Minori ty ‐3 1 ‐6 ‐575.0% 55.1% 1 1 ‐43.0%

Net profit before extra 8 59 ‐51 ‐86.5% 115.5% 164 ‐16 n.m.

Extra ordina ry i tems 0 0 0 n.m. n.m. 0 0 n.m.

Net profit  8 59 ‐51 ‐86.5% 115.5% 164 ‐16 n.m.

EPS  (Bt) 0.02 0.14 ‐0.19 ‐85.7% 110.5% 0.39 ‐0.06 750.0%

Key Financial Ratio

% 4Q15 3Q15 4Q14 q‐q+/‐ y‐y+/‐ 2015 2014 y‐y+/‐

Cos t of s a l e s /s a l e s   52.8% 57.2% 68.9% ‐7.8% ‐23.4% 57.5% 69.8% ‐17.7%

SG&A exp/s a le s   39.4% 29.2% 34.9% 34.8% 12.8% 31.6% 32.2% ‐2.0%

Gros s  margin 47.2% 42.8% 31.1% 10.4% 52.0% 42.5% 30.2% 41.0%

Opera ti ng profi t margin 7.8% 13.5% ‐3.9% ‐42.2% 302.3% 11.0% ‐2.1% 633.0%

Net profi t margin 1.2% 9.1% ‐9.5% ‐86.5% 113.0% 6.9% ‐0.8% 978.4%

Balance Sheet 

Btmn 4Q15 3Q15 4Q14 q‐q+/‐ y‐y+/‐ 2015 2014 y‐y+/‐

As se ts 5,614 5,886 5,028 ‐4.6% 11.7% 5,614 5,028 11.7%

Li a bi l i ti e s 2,786 3,034 3,314 ‐8.2% ‐15.9% 2,786 3,314 ‐15.9%

Pa id ‐up  (mn  s hrs ) ‐ Pa r Bt1 417 417 266 0.0% 56.8% 417 266 56.8%

Equi ti e s 2,828 2,851 1,714 ‐0.8% 65.0% 2,828 1,714 65.0%

BVPS  (Bt) 6.78 6.83 6.44 ‐0.7% 5.3% 6.78 6.44 5.3%

Debt/equi ty (x) 1.0 1.1 1.9 ‐6.6% ‐48.7% 1.0 1.9 ‐48.7%

THAILAND EQUITY RESEARCH 

 

 

PHILLIP SECURITIESS (THAILAND) | 3 | P a g e   

Corporate Governance ‐2015

ADVANC BAFS BCP BIGC BTS CK CPN DRT DTAC DTC

EASTW EGCO GRAMMY HANA HMPRO INTUCH IRPC IVL KBANK KCE

KKP KTB LHBANK LPN MCOT MINT MONO NKI PHOL PPS

PS PSL PTT PTTEP PTTGC  QTC RATCH ROBINS SAMART SAMTEL

SAT SC SCB SCC SE‐ED SIM SNC SPALI THCOM TISCO

TKT TMB TOP VGI WACOAL

AAV ACAP AGE AHC AKP AMATA ANAN AOT APCS ARIP

ASIMAR ASK ASP BANPU BAY BBL BDMS BECL BKI BLA

BMCL BOL BROOK BWG CENTEL CFRESH CHO CIMBT CM CNT

COL CPF CPI CSL DCC DELTA DEMCO ECF EE ERW

GBX GC GFPT GLOBAL GUNKUL HEMRAJ HOTPOT HYDRO ICC ICHI

INET IRC KSL KTC LANNA LH LOXLEY LRH MACO MBK

MC MEGA MFEC NBC NCH NINE NSI NTV OCC OGC

OISHI OTO PAP PDI PE PG PJW PM PPP PR

PRANDA PREB PT PTG Q‐CON QH RS S & J SABINA SAMCO

SCG SEAFCO SFP SIAM SINGER SIS SITHAI SMK SMPC SMT

SNP SPI SSF SSI SSSC SST STA STEC SVI SWC

SYMC SYNTEC TASCO TBSP TCAP TF TGCI THAI THANA THANI

THIP THRE THREL TICON TIP TIPCO TK TKS TMI TMILL

TMT TNDT TNITY TNL TOG TPC TPCORP TRC TRU TRUE

TSC TSTE TSTH TTA TTCL TTW TU TVD TVO TWFP

TWS UAC UT UV VNT WAVE WINNER YUASA ZMICO

2S AEC AEONTS AF AH AIRA AIT AJ AKR AMANAH

AMARIN AP APCO AQUA AS ASIA AUCT AYUD BA BEAUTY

BEC BFIT BH BIG BJC BJCHI BKD BTNC CBG CGD

CHG CHOW CI CITY CKP CNS CPALL CPL CSC CSP

CSS CTW DNA EARTH EASON ECL EFORL ESSO FE FIRE

FOCUS FORTH FPI FSMART FSS FVC GCAP GENCO GL GLAND

GLOW GOLD GYT HTC HTECH IEC IFEC IFS IHL IRCP

ITD JSP JTS JUBILE KASET KBS KCAR KGI KKC KTIS

KWC KYE L&E LALIN LHK LIT LIVE LST M MAJOR

MAKRO MATCH MATI MBKET M‐CHAI MFC MILL MJD MK MODERN

MOONG MPG MSC MTI MTLS NC NOK NUSA NWR NYT

OCEAN PACE PATO PB PCA PCSGH PDG PF PICO PL

PLANB PLAT PPM PRG PRIN PSTC PTL PYLON QLT RCI

RCL RICHY RML RPC S SALEE SAPPE SAWAD SCCC SCN

SCP SEAOIL SIRI SKR SMG SOLAR SORKON SPA SPC SPCG

SPPT SPVI SRICHA SSC STANLY STPI SUC SUSCO SUTHA SYNEX

TAE TAKUNI TCC TCCC TCJ TEAM TFD TFI TIC TIW

TLUXE TMC TMD TOPP TPCH TPIPL TRT TSE TSR UMI

UP UPF UPOIC UREKA UWC VIBHA VIH VPO WHA WIN

XO

Score Range

< 50%

50‐59%

60‐69%

70‐79%

80‐89%

90‐100%

The disclosure of the survey result of the Thai  Institute of Directors  Association (IOD) 

regarding corporate governance is  made pursuant to the Office of the Securities  and 

Exchange Commission. The survey of the IOD is  based on the information of a  company 

l isted on the Stock Exchange of Thailand and the Market for Alternative disclosure to the 

public and able to be accessed by a  general  public investor. The results, 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 data. Phil l ip 

Securities  (Thailand) of securities  company does  not confirm nor certify the accuracy of 

such survey result.

No logo given

Number of Logo

Results Presentation

THAILAND EQUITY RESEARCH 

 

 

PHILLIP SECURITIESS (THAILAND) | 4 | P a g e   

Anti‐corruption indicators

Level 5 (Extended)

BCP CPN GYT PE PM PPP PT PTT PTTGC SAT scc

THANI TOP

Level 4 (Certified) 

DCC DTC DRT EASTW ECL EGCO ERW FSS GCAP HANA HTC

INTUCH IRPC IVL KBANK KCE KGI KKP KTB LANNA LHBANK MTI

NKI PSL PTG PTTEP SABINA SCB SNC SNP SSF SSSC TCAP

THCOM TISCO TMB TMD TNITY TOG

Level 3 (Established) 

Level 3A: Declaration to join CAC, etc

ABC ACAP ADVANC AGE AH AMANAH ANAN AP APCS APURE AS

ASIA ASIAN ASIMAR BIGC BROOK BTS BWG CEN CENTEL CFRESH CHARAN

CHO CHOTI CM CNT COL CPF CPI CPL DELTA DEMCO DIMET

DNA DTAC EA ECF EE EVER FPI GBX GC GFPT GLOW

HMPRO HOTPOT ICC ICHI IFEC INOX INSURE IRC JAS JTS JUBILE

KC KTC KYE LHK LPN LRH MAKRO MC MCOT MFC MFEC

MINT MJD MONO MOONG NBC MSC NDR NINE NMG NSI NTV

OGC PACE PCSGH PDI PG PHOL PLAT PPS PR PRANDA PREB

PS QLT RATCH RML ROBINS ROJNA RWI SAMCO SCCC SCG SEAOIL

SE‐ED SENA SINGER SITHAI SMK SMPC SPALI SPC SPCG SPI SRICHA

SSI STANLY SUPER SVI SYMC SYNEX SYNTEC TASCO TCMC TFI THAI

THRE THREL TICON TKT TLUXE TMILL TMT TNL TPCORP TSTE TSTH

TTCL TU TVI UOBKH UREKA VGI VNT WACOAL WHA ZMICO

Level 3B: Organization's statement but no declaration to join CAC, etc

AAV AHC AIT AKR ARROW ASK BA BDMS BEC BJCHI BUI

CGH CHG CHOW CIG CITY CK CKP COLOR CWT EARTH EASON

EPG F&D FANCY FIRE FMT FORTH GENCO GL GOLD GPSC GRAMMY

HYDRO IRCP IT JCT KCM KWC LH LIT LOXLEY MACO MANRIN

MATI MODERN MSC NOBLE NOK NPK NUSA OISHI OTO PAF PAP

PATO PF PJW PLANB PLE POLAR PRG PTL Q‐CON QTC RCI

S11 SALEE SAM SAMART SAMTEL SAPPE SC SCP SFP SIM SLP

SMT SPA SPORT SSC SST STEC STPI SUC SUTHA SVI T

TBSP TAE TCC TFD TGCI TGPRO THANA THIP TIW TK TMW

TNDT TOPP TPC TPCH TPIPL TSR TT TYCN UAC UBIS UEC

UMI UP UPF UT UV VPO WAVE WINNER YUASA

Level 2 (Declared)

2S ABICO AF AKP AMARIN AMATA AOT APCO AYUD BEAUTY BFIT

BH BKD BLAND BTNC CCP CI CSR CSS EFORL EPCO FE

FNS FVC GEL GLOBAL HEMRAJ IEC IFS INET JUTHA KASET KCAR

KKC KSL L&E LALIN LTX M MALEE MBK MBKET MEGA MK

MPG MTLS NCH NCL NPP OCC OCEAN PB PCA PRINC QH

ROCK RPC S & J SGP SIAM SIS SKR SMG SMIT SORKON SUSCO

TAKUNI TEAM TF TIC TIP TIPCO TMC TMI TPP TRT TRU

TRUE TSC TSI TTW TVD TVO UKEM UNIQ UWC VNG WIIK

WIN XO

Level 1 (Committed)

ACD AEONTS AFC AIRA AJ ALUCON AMC AQUA ARIP AUCT BAT‐3K

BIG BJC BOL BRR BSBM CBG CCET CCN CGD CMR CPH

CSC CSP CTW DCON DRACO DSGT DTCI E EMC ESSO FOCUS

FSMART GIFT GLAND GRAND GUNKUL HFT HTECH ILINK ITD JSP IHL

KDH KTIS KTP LEE LST MAJOR MAX M‐CHAI MDX MIDA MATCH

ML MPIC NC NEP NNCL OHTL PICO PK PL PPM NWR

PRAKIT PRECHA PRIN PSTC RAM RICH RS SANKO SAUCE SAWAD PYLON

SAWANG SCN SEAFCO SHANG SIRI SMART SMM SOLAR SPACK SPG SF

SPPT SPVI STAR SVH SVOA SWC TAPAC TC TCCC TCJ STA

TCOAT TKS TNH TNPC TPA TPAC TPOLY TRC TRUBB TSE TTA

TTI TTL TTTM TWP TWZ U UMS UPA UPOIC UVAN UTP

VARO VI VIBHA VIH VTE WG

Data not available/No policy

A ACC AJD AQ BCH BGT BROCK BSM BTC CHUO CRANE

CPR EIC FER JMART JMT KAMART KBS KIAT LDC MCS METCO

MBAX NEW NEWS NYT PAE PDG PERM PMTA RCL RICHY ROH

POST S SIMAT TCB TR TSF TVT

THAILAND EQUITY RESEARCH 

 

 

PHILLIP SECURITIESS (THAILAND) | 5 | P a g e   

Anti‐corruption indicators

Level 5 : Extended

Anti‐corruption policies extend to business partners, dealers, and distributors.

Level 4 : Certified

Anti‐corruption policies can be engaged by audit committee and auditors approved by the SEC.

Anti‐corruption policies are certified by CAC and independent assurance providers.

Level 3 : Established

Anti‐corruption corruption policies cover anti‐bribery, and communications and educating all employees anti‐corruption policies.

 

Level 3A  Public out statement to join CAC, etc.

Level 3B Declare statement and organization’s anti‐corruption policies but no intention to join CAC, etc.

Level 2 : Declared

Declare statement to participate CAC against corruption.

Level 1 : Committed

Organization and Board of Directors’ statements against corruption and not getting involve in any malpractices.

Assessment

Anti‐corruption progress indicator for listed companies is a part of SEC’s commitment to create sustainability in anti‐corruption and to become a role model to any 

related business. The progress indicators comprise of five levels: 1) Committed, 2) Declared, 3) Established, 4) Certified, and 5) Extended. These indicators will 

encourage listed firms to formulate anti‐corruption policies to opt out of corruption, and investors can determine their investment based on anti‐corruption indicator 

or avoid investment in listed firms that could get involve in corruption.

THAILAND EQUITY RESEARCH 

 

 

PHILLIP SECURITIESS (THAILAND) | 6 | P a g e   

Industry Group Name Sector Name Sector Index

Agro & Food Industry[AGRO]  Agribusiness AGRI

Food & Beverage FOOD

Consumer Products[CONSUMP] Fashion FASHION

Home & Office Products HOME

Personal  Products  & Pharmaceuticals PERSON

Financials  [FINCIAL] Banking BANK

Finance & Securities FIN

Insurance INSUR

Industrials  [INDUS] Automotive AUTO

Industrial  Materials  & Machinery IMM

Packaging PKG

Paper & Printing Materials PAPER

Petrochemicals  & Chemicals PETRO

Steel STEEL

Property & Construction[PROPCON] Construction Materials CONMAT

Construction Services CONS 

Property Development PROP

Property Fund & REITs PF&REIT 

Resources  [RESOURC] Energy & Util ities ENERG

Mining MINE

Services  [SERVICE] Commerce COMM

Media  & Publishing MEDIA

Health Care Services HELTH

Tourism & Leisure TOURISM

Professional  Services PROF

Transportation & Logistics TRANS

Technology [TECH] Electronic Components ETRON

Information & Communication Technology ICT

PSR Rating SystemCapital Gain Recommendation

> 15% BUY

> 5% ‐ 15% ACCUMULATE / TRADING BUY

> 0% ‐ 5% NEUTRAL

0 <= SELL

Remarks

We do not base our recommendations  entirely on the  above quantitative return bands.  We consider qualitative factors  l ike (but 

not l imited to) a  stock's  risk reward profi le, market sentiment, recent rate of share price appreciation, presence or absence of 

stock price catalysts, and speculative undertones  surrounding the stock, before making our final  recommendation 

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