Thanachart Ad Hoc Research Thanachart Ad Hoc Research 20 FEBRUARY 2013 BUY (Unchanged) TP: Bt 13.50 (From Bt 8.00) Change in Numbers Upside: 32.4% RS Public Co Ltd (RS TB) Best of both worlds We’ve liked RS as we’ve seen it as the best play on the satellite TV boom for two years, and we now view it as the best play on the upcoming digital TV story. In both stages of media platform development, we believe RS will enjoy continued ad rate hikes. We incorporate digital TV KALVALEE THONGSOMAUNG value and see RS’s TP at Bt13.50/share (from Bt8.00). Reiterate BUY. 662 – 617 4900
[email protected] Proven success in satellite TV business … We see 79% and 51% EPS growth for RS in 2013-14 driven by the success COMPANY VALUATION of its satellite TV business, as reflected by: 1) satellite and cable TV penetration rising from 50% in 2011 to 66% in 2012 and potentially 75-80% Y/E Dec (Bt m) 2011A 2012F 2013F 2014F in 2013, 2) an average ad rate hike of 42% effective early 2013 (or 100% for Sales 2,729 2,734 3,448 3,945 primetime), 3) utilization rate rising from 36% in 2011 to 61% in 2012 and our Net profit 209 259 465 703 forecast of 66% in 2013, and 4) RS’s channels’ (Sabaidee TV and Channel Consensus NP ⎯ 286 398 623 8) rankings climbing to the top two spots in Nielsen’s satellite TV rankings. Diff frm cons (%) ⎯ (9.4) 16.8 12.7 … and the best digital TV story play Norm profit 179 259 465 703 Prev.