COMPANY UPDATE Thailand
Workpoint Entertainment
(WORK.BK/WORK TB)*
Neutral‧Maintained ประมาณการ 3Q61: กาไรจะเพํ มขิ่ นึ้ QoQ แต่ลดลง YoY
Price as of 8 Nov 2018 32.25 Event 12M target price (Bt/shr) 34.25 ประมาณการผลประกอบการงวด 3Q61 Unchanged/Revised up(down)(%) (31.5) lmpact Upside/downside (%) 6.2 อตราการขายเวลาโฆษณาและอั ตราคั ่าโฆษณาทลดลงจะฉดใหี่ ุ ้กาไรในํ 3Q61 ลดลง 66% YoY Key messages เราคาดวากาไรส่ ํ ุทธิของ WORK ใน 3Q61 จะอยทู่ ี่ 127 ลานบาท้ (+10% QoQ, -66% YoY) โดยกาไรทํ ี่ เราคาดกาไรสํ ุทธิของ WORK ในงวด 3Q61 ที่ 127 ลานบาท้ เพ่ิมข้ึน QoQ จะมาจากรายไดท้ ี่เพ่ิมข้ึน 11% QoQ ตามการขายเวลาโฆษณาของ Workpoint TV ที่คาดวา่ (+10% QoQ, -66% YoY) โดยกาไรทํ ี่เพ่ิมข้ึน QoQ จะมาจาก จะเพ่ิมข้ึนจาก 53% ใน 2Q61 เป็น 60% ในขณะที่คาดวาส่ ดสวนั ่ คาใช่ จายในการขายและบร้ ่ ิหาร/ รายไดท้ ี่เพิ่มข้ึน 11% QoQ ของชองเว่ ิร์คพอยท ์ ทีวี ตามเรตติ้ง ยอดขายจะลดลงจาก 24.7% ใน 2Q61 เป็น 21.4% แตเม่ ื่อเทียบ YoY กาไรในํ 3Q61 จะถูกกดดนจากั ที่เพิ่มข้ึน แตเม่ ื่อเทียบ YoY กาไรในํ 3Q61 จะถูกกดดนจากั รายไดท้ ี่ลดลง 16% YoY เพราะคาดมีอตราการขายเวลาั รายไดท้ ี่ลดลง 16% YoY เพราะคาดอตราการขายเวลาโฆษณาลดลงจากั 71% ใน 3Q60 และ อตราคาั ่ โฆษณา และอตราคาโฆษณาลดลงั ่ เราไดปร้ ับลดประมาณการ โฆษณาลดลง 9% YoY จาก 82,000 บาท/นาที ใน 3Q60 กาไรปํ ี 2561-62 ลง เนื่องจากกาไรของํ WORK ในงวด 9M61 อยทู่ ี่ 410 ลานบาท้ ที่คาด จะคิดเป็นสดสวนเพั ่ ียง 49% ของ เรายงเปั ็นห่วงว่า WORK จะรักษาเรตติงไว้ ้ได้หรือไม่หลงหยดออกอากาศรายการกั ุ ฬาี ประมาณการกาไรปํ ีน้ีท้งปั ีของเราเทาน่ ้นั ซ่ึงภายหลงการปรั ับ เราคาดวาอ่ ตราการขายเวลาโฆษณาทั ี่เพิมข่ ้ึน QoQ ใน 3Q61 ตามเรตติ้ง (24 ชม.) ของชองเว่ ริ ์คพอยท ์ ทีวี ประมาณการและปรับไปใชราคาเป้ ้ าหมายปี 2562 จะลดลง ที่เพ่ิมข้ึนเป็น 0.87 จาก 0.76 ใน 2Q61 และ 0.80 ใน 3Q60 จากการออกอากาศรายการกฬาี (เอเชี่ยนเกมส์ เหลือ 34.25 บาท (PER 24.5x, -1 S.D) เรายงคงคั าแนะนํ าเพํ ียง 2561) ดงนั ้นั เราจึงคาดวาผลประกอบการนาจะเต่ ่ ิบโตตอเน่ ื่องใน 4Q61 จากรายไดท้ ี่เพ่ิมข้ึนเพราะ "ถือ" WORK รายการกฬาี ดวยเชน้ ่ กนั เพราะมีรายการวอลเลยบอลหญ์ ิงชิงแชมป์ โลก ซ่ึงออกอากาศในเดือนตุลาคม 2561 แตอยางไรกตาม่ ่ ็ เป็นที่นากงวลวา่ ั ่ บริษทจะรั ักษาเรตติ้งเอาไวได้ หร้ ือไมในป่ ีหนาเน้ ื่องจาก i) รายการกฬาี จบลงไปต้งแตั ่ 4Q61 ii) ไมม่ ีรายการดงอยางั ่ "หนากากน้ กรั ้อง ซีซน่ั 1" และ "หนากาก้ Trading data นกรั ้อง ซีซน่ั 2" ซ่ึงไดเรตต้ ิ้งสูงถึง 7.1-7.3 และ iii) การแขงข่ นทั ี่รุนแรงบวกกบการเขั ามาของ้ สื่อดิจิตอล Mkt cap (Btbn/US$mn) 14/356 ปรับลดประมาณการกาไรปํ ี 2561-62 ลงเพอสะทื่ ้อนผลประกอบการ 1H61 Outstanding shares (mn) 442 Foreign ownership (mn) 52 เนื่องจากกาไรของํ WORK ในงวด 9M61 อยทู่ ี่ 410 ลานบาท้ หรือคิดเป็นแค่ 49% ของประมาณการกาไรํ 3M avg. daily trading (mn) 3 ท้งปั ีของเราเทาน่ ้นั เราจึงปรับลดประมาณการกาไรปํ ี 2561-62 ลง โดยปรับประมาณการรายไดของชอง้ ่ 52-week trading range (Bt) 29.25 – 105.00 เวริ ์คพอยท ์ ทีว ี ในปี 2561-62 ลง 8% - 17% ตามลาดํ บั จากการปรับลดสมมติฐานการขายเวลาโฆษณา Performance (%) 3M 6M 12M และอตราคาโฆษณาั ่ สงผลให่ ประมาณการกาไรส้ ํ ุทธิปี 2561-62 ของเราลดลงจากเดิม 35% - 40% เหลือ Absolute -17.3 -46.5 -68.8 550 ลานบาทในป้ ี 2561 (-39% YoY) และ 590 ลานบาทในป้ ี 2562 (+7% YoY) Relative -16.1 -43.8 -68.4 Valuation & Action Quarterly EPS ภายหลงการปรั ับลดประมาณการกาไรของํ WORK ลง และปรับไปใชราคาเป้ ้ าหมายปี 2562 จะลดลง 1Q 2Q 3Q 4Q เหลือ 34.25 บาท (PER 24.5x, -1 S.D) ซ่ึงเหลือ upside จากราคาตลาดอีกไมมาก่ ดงนั ้นเราจั ึงยงคงั 2016 0.07 0.32 0.26 (0.17) คาแนะนํ าเพํ ียง "ถือ" WORK. 2017 0.41 0.89 0.90 (0.05) 2018 0.38 0.26 NA NA Risks รายไดจาก้ Workpoint TV ต่ากวาทํ ่ ี่เราคาดไว ้ Share price chart 110 100 0 90 Key financials and valuations 80 (20) 70 Dec-15A Dec-16A Dec-17A Dec-18F Dec-19F 60 (40) Revenue (Btmn) 2,434 2,667 3,853 3,631 3,482 50 Gross Profit (Btmn) 1,058 1,162 2,111 1,543 1,551 40 (60) 30 EBIT (Btmn) 294 339 1,252 711 750 20 (80) Net Profit (Btmn) 150 199 904 550 590 Nov-17 Jan-18 Apr-18 Jun-18 Aug-18 Nov-18 Share Price Price performance relative to SET Normalized Profit (Btmn) 150 199 904 550 590 Source: SET EPS (Bt) 0.36 0.48 2.06 1.25 1.34 DPS (Bt) 0.34 0.27 1.39 0.87 0.94 EPS growth (%) (698.3) 32.1 332.8 (39.5) 7.2 Piyathida Sonthisombat 66.2658.8888 Ext.8852 P/E (x) 121.4 92.4 40.9 25.9 24.1 [email protected] P/B (x) 6.55 6.15 8.32 3.03 2.90 EV/EBITDA (x) 22.3 20.3 21.3 10.3 10.3 Net debt/Equity (x) (0.1) (0.0) (0.2) (0.2) (0.3) Dividend yield (%) 0.8 0.6 1.6 2.7 2.9
Return on Average Equity (%) 6.7 6.9 24.3 12.0 12.3 Source: Company data, KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 1 November 9, 2018 http://research.kgi.com; Bloomberg: KGIT
Figure 1: WORK’s 3Q18 earnings preview
Bt mn 3Q18F 2Q17 YoY (%) 2Q18 QoQ (%) 9M18F 9M17 YoY (%) Revenue 936 1,114 (16.0) 841 11.2 2,662 3,086 (13.8) Gross Profit 361 666 (45.7) 356 1.5 1,123 1,784 (37.1) Operating Expenses (200) (200) 0.2 (208) (3.8) (596) (560) 6.5 Operating Profit 161 466 (65.4) 148 9.1 527 1,224 (57.0) Operating EBITDA 339 588 (42.4) 300 12.8 994 1,585 (37.3) Other incomes/expenses 14 20 (31.0) 15 (5.7) 34 25 32.6 Interest Expense (12) (23) (45.6) (14) (13.8) (43) (71) (39.4) Current taxation (33) (89) (63.6) (30) 9.4 (100) (249) (59.6) Minorities (3) (1) 160.4 (3) 8.9 (8) (4) 96.8 Extra items - - NM - NM - - NM Net Profit 127 373 (65.9) 116 9.9 408 925 (55.9) EPS (Bt) 0.29 0.89 (67.5) 0.26 9.9 0.93 2.20 (58.0) Percent 3Q18F 2Q17 YoY (ppts) 2Q18 QoQ (ppts) 9M18F 9M17 YoY (%) Gross margin 38.6 59.8 (17.5) 42.3 (3.7) 42.2 57.8 (15.6) SG&A/sales 21.4 17.9 6.8 24.7 (3.3) 22.4 18.1 4.3 Net profit margin 13.6 33.5 (19.7) 13.7 (0.2) 15.3 30.0 (14.6)
Source: Company data, KGI Research
Figure 2: Key assumptions Figure 3: Financial highlights Key assumptions2018F Change 2019F Change 2015A 2016A 2017A 2018F 2019F (Btmn) Previous New (%) Previous New (%) Revenue (Bt bn) Sales and service revenue 3,896 3,631 (6.8) 4,090 3,482 (14.9) Old forecast 2.4 2.7 3.9 3.9 4.1 TV 3,442 3,177 (7.7) 3,569 2,961 (17.0) New forecast 2.4 2.7 3.9 3.6 3.5 Concert/plays 200 200 - 250 250 - Event 120 120 - 120 120 - Change (%) - - - (6.8) (14.9) Others 134 134 - 151 151 - TV segment Costs (Bt bn) Workpoint TV (Bt mn) 3,195 2,930 (8.3) 3,305 2,697 (18.4) Old forecast 1.4 1.5 1.7 1.9 1.9 Long term contracts 1,980 1,540 (22.2) 2,090 1,200 (42.6) New forecast 1.4 1.5 1.7 2.1 1.9 Short term packages 1,215 1,390 14.4 1,215 1,497 23.2 Change (%) - - - 8.5 1.1 On line TV (Bt mn) 232 232 0.1 244 244 0.0 Licensing (Bt mn) 15 15 - 20 20 - SG&A (Bt bn) Old forecast 0.8 0.8 0.9 0.9 0.9 New forecast 0.8 0.8 0.9 0.8 0.8 Change (%) - - - (0.1) (0.1)
Net profit (Btbn) Old forecast 0.2 0.2 0.9 0.8 1.0 New forecast 0.2 0.2 0.9 0.6 0.6 Change (%) - - - (34.6) (39.9)
Source: KGI Research Source: Company data, KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 2 November 9, 2018 http://research.kgi.com; Bloomberg: KGIT
Figure 3: Company profile Figure 4: Breakdown of sales and services revenues
Workpoint Entertainment Public Company Limited (WORK), is a digital TV Breakdown of revenues, percent 5.20.1 4.70.7 2.11.2 0.1 1.83.2 0.35.2 1.01.9 0.82.7 4.5 4.4 4.8 3.9 3.5 5.6 3.7 2.7 8.1 3.8 3.1 5.7 4.3 4.9 5.1 4.3 operator operating under NBTC’s license. In addition to its TV business, 32.7 the company provides other media such as movies, publishing, 3.7 concert/plays and event marketing. However, the company’s core 91.1 91.1 91.3 91.8 92.7 revenue comes from its TV business which represented 90.2% of total 90.7 89.0 87.5 84.8 86.6 63.6 sales and services in 2017, followed by concert/plays and events which accounted for 4.8% and 3.6%, respectively.
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18F TV Concert Event Others
Source: Company data Source: Company data, KGI Research
Figure 5: Workpoint TV's rating Figure 6: TV revenues
Rating, points TV revenues, Bt mn 1.20 1,022.8 1,035.1 1.10 810.4 1.00 730.7 738.9 774.5 746.7 707.0 682.1 0.90 495.9 458.0 0.80 0.70 0.60 0.50
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18F
Source: Nielsen Source: Company data, KGI Research
Figure 7: Total sales and services revenues Figure 8: Net profit
Total sales and services revenues, Bt mn Net profit, Bt mn
372.8 380.0 1,114.2 1,163.4 935.6 885.1 841.3 801.7 795.7 808.8 766.1 173.4 165.6 546.7 133.9 115.6 127.1 489.4 108.0 28.7
(21.2) (72.0) 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18F 3Q18F
Source: Company data, KGI Research Source: Company data
Figure 9: Company’s PER band Figure 10: Company’s PBV PER, times PBV, times
180 12.0 +2 sd = 128.0x 140 10.0 +2 sd = 8.3x +1 sd = 94.2x 100 8.0 +1 sd = 6.8x 60 6.0 Average = 60.4x 20 4.0 Average = 5.3x -1 sd = 26.6x -1 sd = 3.7x (20) 2.0 -2 sd = -7.2x -2 sd = 2.2x (60) 0.0 2013 2014 2015 2016 2017 2018F 2019F 2013 2014 2015 2016 2017 2018F 2019F
Source: KGI Research Source: KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 3 November 9, 2018 http://research.kgi.com; Bloomberg: KGIT
Quarterly Income Statement Mar-16A Jun-16A Sep-16A Dec-16A Mar-17A Jun-17A Sep-17A Dec-17A Mar-18A Jun-18A Sep-18F Income Statement (Bt mn) Revenue 547 802 796 489 809 1,114 1,163 766 885 841 936 Cost of Goods Sold (319) (409) (437) (331) (390) (448) (464) (439) (480) (485) (574) Gross Profit 228 392 358 158 418 666 700 328 405 356 361 Operating Expenses (181) (197) (199) (246) (163) (200) (197) (300) (188) (208) (200) Other incomes ------Operating Profit 47 196 160 (87) 256 466 503 27 218 148 161 Depreciation of fixed assets (131) (145) (136) (114) (115) (122) (124) (129) (137) (153) (178) Operating EBITDA 178 340 296 27 371 588 627 157 355 300 339 Non-Operating Income 22 3 11 15 3 26 6 - 5 12 12 Interest Income Other Non-op Income 22 3 11 15 3 26 6 - 5 12 12 Non-Operating Expenses (32) (30) (28) (22) (26) (23) (23) (36) (16) (14) (12) Interest Expense (32) (30) (28) (22) (26) (23) (23) (26) (16) (14) (12) Other Non-op Expenses ------(10) - - - Net investment Income/(Loss) (2) (1) 1 3 2 (5) (6) (4) 0 3 5 Pre-tax Profit 36 168 143 (92) 235 463 480 (12) 206 148 166 Current taxation (6) (34) (27) 15 (61) (89) (98) (9) (38) (30) (33) Minorities (1) 0 (8) 4 (1) (1) (2) (0) (2) (3) (3) Extraordinary items Net Profit 29 134 108 (72) 173 373 380 (21) 166 116 130 EPS (Bt) 0.07 0.32 0.26 (0.17) 0.41 0.89 0.90 (0.05) 0.38 0.26 0.29 Margins (%) Gross profit margin 41.7 48.9 45.0 32.3 51.7 59.8 60.1 42.7 45.8 42.3 38.6 Operating margin 8.6 24.4 20.1 (17.8) 31.6 41.8 43.2 3.6 24.6 17.6 17.2 Operating EBITDA margin 32.6 42.5 37.2 5.4 45.9 52.7 53.9 20.4 40.1 35.7 36.2 Net profit margin 5.3 16.7 13.6 (14.7) 21.3 33.5 32.7 (2.8) 18.7 13.7 13.8 Growth (%) Revenue growth 27.9 18.1 24.2 (28.8) 47.9 39.0 46.2 56.5 9.4 (24.5) (19.6) Operating growth (1,482.9) 42.3 76.0 (225.8) 441.2 138.2 215.0 (131.4) (14.8) (68.3) (67.9) Operating EBITDA growth 57.2 24.2 31.4 (89.2) 107.9 72.6 111.9 488.6 (4.3) (48.9) (46.0)
Net profit growth (214.4) 31.0 134.3 (364.9) 500.5 178.4 251.8 (70.5) (4.0) (69.0) (65.9)
Source: KGI Research
Peer comparison – Key valuation stats 18F EPS 19F EPS Target Current Upside 17 EPS 18F EPS 19F EPS growth growth 18F PER 19F PER 18F PBV 19F PBV 18F Div 18F ROAE Rating price (Bt) price (Bt) (%) (Bt) (Bt) (Bt) (%) (%) (x) (x) (X) (X) Yield (%) (%) BEC N 7.20 5.85 23.1 0.03 (0.02) 0.15 NM NM NM 39.3 1.8 1.7 0.0 (0.6) MAJOR* N 31.50 22.40 40.6 1.33 1.31 1.41 (1.7) 7.2 17.1 15.9 3.1 3.0 5.6 18.0 MONO UR NA 1.97 NA 0.02 NA NA NA NA NA NA NA NA NA NA PLANB OP 8.70 6.75 28.9 0.13 0.19 0.22 47.1 13.7 35.2 31.0 5.8 5.4 1.5 17.5 RS* OP 28.75 15.60 84.3 0.33 0.55 0.90 68.2 62.1 28.1 17.4 6.2 4.3 2.1 28.9 WORK* N 34.25 32.25 6.2 2.06 1.25 1.34 (39.5) 7.2 25.9 24.1 3.1 2.9 2.7 12.10 Sector Neutral 3.90 3.29 4.01 (15.8) 22.0 29.8 21.8 5.0 4.2 3.1 19.5
Source: KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 4 November 9, 2018 http://research.kgi.com; Bloomberg: KGIT
Balance Sheet Profit & Loss
As of 31 Dec (Bt mn) 2015A 2016A 2017A 2018F 2019F Year to 31 Dec (Bt mn) 2015A 2016A 2017A 2018F 2019F Total Assets 5,588 5,422 6,448 6,315 6,347 Revenue 2,434 2,667 3,853 3,631 3,482 Current Assets 1,761 1,726 2,677 2,500 2,592 Cost of Goods Sold (1,376) (1,505) (1,741) (2,088) (1,931) Cash & ST Investments 1,277 1,241 1,894 1,719 1,843 Gross Profit 1,058 1,162 2,111 1,543 1,551 Operating Expenses (764) (823) (860) (832) (801) Inventories 47 85 170 127 122 Other incomes ----- Accounts Receivable 437 256 520 654 627 Operating Profit 294 339 1,252 711 750 Others - 144 94 - - Depreciation of fixed assets 526 565 482 669 629 Non-current Assets 3,828 3,697 3,771 3,815 3,755 Operating EBITDA 820 904 1,734 1,380 1,379 LT Investments 7938232323 Non-Operating Income 20 26 25 25 25 Net fixed Assets 997 1,009 1,100 1,192 1,247 Interest Income - - - - - Others 2,751 2,650 2,648 2,600 2,485 Other Non-op Income 20 26 25 25 25 Total Liabilities 2,802 2,436 2,004 1,685 1,479 Non-Operating Expenses (132) (113) (98) (52) (41) Interest Expense (132) (113) (98) (52) (41) Current Liabilities 1,101 957 1,236 1,114 977 Other Non-op Expenses - - - - - Accounts Payable 760 676 845 711 706 Equity Income/(Loss) 14 2 (13) 6 6 ST Borrowings ----- Pre-tax Profit 196 255 1,166 690 740 Others 341 281 391 403 270 Current taxation (45) (52) (258) (138) (148) Long-term Liabilities 1,700 1,479 768 571 503 Minorities (1) (4) (4) (2) (2) Long-term Debts 340 579 245 58 - Extraordinary items - - - - - Others 1,360 900 524 513 503 Net Profit 150 199 904 550 590 Shareholders' Equity 2,787 2,987 4,443 4,629 4,868 EPS (Bt) 0.36 0.48 2.06 1.25 1.34 Common Stock 417 417 439 441 441 Source: KGI Research Capital Surplus 1,841 1,841 2,718 2,813 2,813 Retained Earnings 493 631 1,216 1,369 1,574 Others 36 98 71 6 39 Cash Flow Source: KGI Research Year to 31 Dec (Bt mn) 2015A 2016A 2017A 2018F 2019F Operating Cash Flow 522 697 1,164 1,088 1,247 Key Ratios Net Profit 151 203 908 552 592 Depreciation & Amortization 511 549 490 669 629 Year to 31 Dec (Bt mn) 2015A 2016A 2017A 2018F 2019F Change in Working Capital (135) (127) (342) (134) 26 Forecast Drivers Others (5) 72 108 - - Advertising rate (Bt/minute) 30,000 50,000 75,000 78,000 70,000 Investment Cash Flow (1,285) (901) (1,076) (748) (508) Growth (% YoY) Sales 18.6 9.6 44.4 (5.7) (4.1) Net CAPEX - - - (200) (150) OP N.A. 15.3 268.9 (43.2) 5.5 Change in LT Investment (210) (13) (155) 56 50 EBITDA 135.0 10.2 91.9 (20.4) (0.1) Change in Other Assets (1,075) (888) (921) (604) (409) NP N.A. 32.1 355.2 (39.1) 7.2 Free Cash Flow (763) (204) 88 339 739 EPS N.A. 32.1 332.8 (39.5) 7.2 Financing Cash Flow 686 (56) 55 (487) (591) Profitability (%) Change in Share Capital 1,073 - - 2 - Gross Margin 43.5 43.6 54.8 42.5 44.5 Net Change in Debt (241) 67 (356) (188) (206) Operating Margin 12.1 12.7 32.5 19.6 21.5 EBITDA Margin 33.7 33.9 45.0 38.0 39.6 Change in Other LT Liab. (145) (123) 411 (301) (385) Net Cash Flow (77) (260) 143 (148) 148 Net Profit Margin 6.2 7.4 23.5 15.2 16.9 ROAA 2.8 3.6 15.2 8.6 9.3 Source: KGI Research ROAE 6.7 6.9 24.3 12.1 12.4 Stability Gross Debt/Equity (%) 0.0 0.0 0.0 0.0 0.0 Net Debt/Equity (%) (7.0) (0.6) (19.5) (20.2) (27.1) Rates of Return on Invested Capital Interest Coverage (x) 2.2 3.0 12.8 13.7 18.2 COGS Depreciation Operating Exp. Operating Interest & ST Debt Coverage (x) 2.2 3.0 12.8 13.7 18.2 Year 1- + + = Cash Flow Interest Coverage (x) (3.9) (6.2) (11.9) (20.9) (30.3) Revenue Revenue Revenue Margin Cash Flow/Interest & ST Debt (x) (3.9) (6.2) (11.9) (20.9) (30.3) Dec-15A 56.5% 21.6% 31.4% -9.5% Current Ratio (x) 1.6 1.8 2.2 2.2 2.7 Dec-16A 56.4% 21.2% 30.9% -8.4% Quick Ratio (x) 1.6 1.7 2.0 2.1 2.5 Dec-17A 45.2% 12.5% 22.3% -9.5% Net Debt (Bt mn) net cash net cash net cash net cash net cash Dec-18F 57.5% 18.4% 22.9% 20.0% Per Share Data (Bt) Dec-19F 55.5% 18.1% 23.0% 1.2% Working Capital Net PPE Other Assets Capital EPS 0.4 0.5 2.1 1.2 1.3 Year 1/ + + = CFPS 1.3 1.7 2.7 2.5 2.8 Revenue Revenue Revenue Turnover BVPS 6.7 7.2 10.1 10.5 11.0 Dec-15A -0.06 0.41 1.13 0.54 SPS 5.8 6.4 8.8 8.2 7.9 Dec-16A -0.05 0.38 1.05 0.67 Dec-17A -0.09 0.29 0.71 0.73 EBITDA/Share 2.0 2.2 4.0 3.1 3.1 Dec-18F -0.04 0.33 0.72 1.10 DPS 0.3 0.3 1.4 0.9 0.9 Dec-19F 0.01 0.36 0.71 0.99 Activity Operating Capital Cash After-tax Return Year x x = Asset Turnover (x) 0.5 0.5 0.6 0.6 0.6 Margin Turnover Tax Rate on Inv. Capital Days Receivables 61.0 47.4 36.8 59.0 67.1 Dec-15A -9.5% 0.7 76.9 -17.9 Days Inventory 16.6 15.9 26.7 25.9 23.5 Dec-16A -8.4% 0.7 79.6 -4.9 Days Payable (254.7) (225.4) (131.5) (184.1) (166.8) Dec-17A 20.0% 1.1 77.9 -4.9 Cash Cycle 332.2 288.8 194.9 268.9 257.4 Dec-18F 1.2% 1.0 80.0 17.1 Dec-19F 3.5% 0.9 80.0 0.9 Source: KGI Research Source: KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 5 November 9, 2018 http://research.kgi.com; Bloomberg: KGIT
Workpoint Entertainment – Recommendation & target price history
110 Date Rating Target Price 100 7-Aug-18 Neutral 50.00 43.00 90 4-Jun-18 Neutral 49.50 40.75 80 14-May-18 Neutral 67.50 55.50 70 5-Feb-18 Outperform 94.00 82.50 60 29-Nov-17 Neutral 94.00 84.50 50 40 10-Nov-17 Neutral 109.00 98.50 30 20 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Share price Target price lowered Target price raised
Source: KGI Research
*The Company may be issuer of Derivative Warrants on these securities. 6 November 9, 2018 http://research.kgi.com; Bloomberg: KGIT
Corporate Governance Report of Thai Listed Companies
Companies with Excellent CG Scoring Stock Company name Stock Company name Stock Company name
ADVANC ADVANCED INFO SERVICE HMPRO HOME PRODUCT CENTER QH QUALITY HOUSES ANAN ANANDA DEVELOPMENT INTUCH SHIN CORPORATION RATCH RATCHABURI ELECTRICITY GENERATING HOLDING AOT AIRPORTS OF THAILAND IRPC IRPC ROBINS ROBINSON DEPARTMENT STORE AP ASIAN PROPERTY DEVELOPMENT IVL INDORAMA VENTURES SAMART SAMART CORPORATION BANPU BANPU KBANK KASIKORNBANK SAMTEL SAMART TELCOMS BCP THE BANGCHAK PETROLEUM KCE KCE ELECTRONICS SCB THE SIAM COMMERCIAL BANK BTS BTS GROUP HOLDINGS KKP KIATNAKIN BANK SCC THE SIAM CEMENT CK CH. KARNCHANG KTB KRUNG THAI BANK SCCC SIAM CITY CEMENT CPF CHAROEN POKPHAND FOODS KTC KRUNGTHAI CARD SPALI SUPALAI CPN CENTRAL PATTANA LPN L.P.N. DEVELOPMENT SPRC STAR PETROLEUM REFINING DELTA DELTA ELECTRONICS (THAILAND) MINT MINOR INTERNATIONAL STEC SINO-THAI ENGINEERING AND CONSTRUCTION DTAC TOTAL ACCESS COMMUNICATION MONO MONO TECHNOLOGY SVI SVI EASTW EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMPLANB PLAN B MEDIA TCAP THANACHART CAPITAL EGCO ELECTRICITY GENERATING PSH PRUKSA HOLDING THCOM THAICOM GFPT GFPT PTT PTT TISCO TISCO FINANCIAL GROUP GPSC GLOBAL POWER SYNERGY PTTEP PTT EXPLORATION AND PRODUCTION TMB TMB BANK GUNKUL GUNKUL ENGINEERING PTTGC PTT GLOBAL CHEMICAL TOP THAI OIL HANA HANA MICROELECTRONICS PYLON PYLON TRUE TRUE CORPORATION Companies with Very Good CG Scoring Stock Company name Stock Company name Stock Company name
AAV ASIA AVIATION ERW THE ERAWAN GROUP SAWAD SRISAWAD POWER 1979 AMATA AMATA CORPORATION GLOBAL SIAM GLOBAL HOUSE SCI SCI ELECTRIC BBL BANGKOK BANK GLOW GLOW ENERGY SCN SCAN INTER BCPG BCPG LH LAND AND HOUSES SEAFCO SEAFCO BDMS BANGKOK DUSIT MEDICAL SERVICES MAJOR MAJOR CINEPLEX GROUP SIRI SANSIRI BEM BANGKOK EXPRESSWAY AND METRO MAKRO SIAM MAKRO SMT STARS MICROELECTRONICS (THAILAND) CENTEL CENTRAL PLAZA HOTEL MALEE MALEE SAMPRAN TASCO TIPCO ASPHALT CHG CHULARAT HOSPITAL MTLS MUANGTHAI LEASING TKN TAOKAENOI FOOD & MARKETING CKP CK POWER NOK NOK AIRLINES TVO THAI VEGETABLE OIL DCC DYNASTY CERAMIC RS RS TWPC THAI WAH Companies with Good CG Scoring Stock Company name Stock Company name Stock Company name
AMA AMA MARINE BPP BANPU POWER SQ SAHAKOL EQUIPMENT BA BANGKOK AIRWAYS CBG CARABAO GROUP TPCH TPC POWER HOLDING BCH BANGKOK CHAIN HOSPITAL LPH LADPRAO GENERAL HOSPITAL BH BUMRUNGRAD HOSPITAL SAPPE SAPPE Companies classified Not in the three highest score groups Stock Company name Stock Company name Stock Company name
BGRIM B.GRIMM POWER TOA TOA PAINT (THAILAND) WHAUP WHA UTILITIES AND POWER CPALL CP ALL UNIQ UNIQUE ENGINEERING AND CONSTRUCTION WORK WORKPOINT ENTERTAINMENT THAI THAI AIRWAYS INTERNATIONAL WHA WHA CORPORATION
Source: www.thai-iod.com 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 assessment 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 or when there is any change to the relevant information. Nevertheless, KGI Securities (Thailand) Public Company Limited (KGI) does not confirm, verify, or certify the accuracy and completeness of such survey result.
*The Company may be issuer of Derivative Warrants on these securities. 7 November 9, 2018 http://research.kgi.com; Bloomberg: KGIT
Anti-corruption Progress Indicator
Level 5: Extended Stock Company name Stock Company name Stock Company name CPN CENTRAL PATTANA SCC THE SIAM CEMENT Level 4: Certified Stock Company name Stock Company name Stock Company name ADVANC ADVANCED INFO SERVICE IFEC INTER FAR EAST ENGINEERING SVI SVI BBL BANGKOK BANK KBANK KASIKORNBANK TCAP THANACHART CAPITAL DCC DYNASTY CERAMIC KKP KIATNAKIN BANK TISCO TISCO FINANCIAL GROUP DRT DIAMOND ROOFING TILES KTB KRUNG THAI BANK TMB TMB BANK EGCO ELECTRICITY GENERATING MINT MINOR INTERNATIONAL ERW THE ERAWAN GROUP SCB THE SIAM COMMERCIAL BANK Level 3: Established Stock Company name Stock Company name Stock Company name AAV ASIA AVIATION DTAC TOTAL ACCESS COMMUNICATION PACE PACE DEVELOPMENT CORPORATION ANAN ANANDA DEVELOPMENT GFPT GFPT PS PRUKSA REAL ESTATE AP ASIAN PROPERTY DEVELOPMENT GL GROUP LEASE RATCH RATCHABURI ELECTRICITY GENERATING HOLDING BA BANGKOK AIRWAYS GLOW GLOW ENERGY ROBINS ROBINSON DEPARTMENT STORE BDMS BANGKOK DUSIT MEDICAL SERVICES GPSC GLOBAL POWER SYNERGY SAMART SAMART CORPORATION BIGC BIG C SUPERCENTER HMPRO HOME PRODUCT CENTER SPALI SUPALAI BJCHI BJC HEAVY INDUSTRIES KTC KRUNGTHAI CARD STEC SINO-THAI ENGINEERING AND CONSTRUCTION CENTEL CENTRAL PLAZA HOTEL LPN L.P.N. DEVELOPMENT TASCO TIPCO ASPHALT CHG CHULARAT HOSPITAL MAKRO SIAM MAKRO TMT THAI METAL TRADE CK CH. KARNCHANG MODERN MODERNFORM GROUP TPCH TPC POWER HOLDING CKP CK POWER NOK NOK AIRLINES WHA NOK AIRLINES Level 2: Declared Stock Company name Stock Company name Stock Company name AOT AIRPORTS OF THAILAND GUNKUL GUNKUL ENGINEERING QH QUALITY HOUSES BH BUMRUNGRAD HOSPITAL ILINK INTERLINK COMMUNICATION TRT TIRATHAI GLOBAL SIAM GLOBAL HOUSE MTLS MUANGTHAI LEASING TVO THAI VEGETABLE OIL Level 1: Committed Stock Company name Stock Company name Stock Company name CBG CARABAO GROUP RS RS SAWAD SRISAWAD POWER 1979 MAJOR MAJOR CINEPLEX GROUP No progress Stock Company name Stock Company name Stock Company name BCH BANGKOK CHAIN HOSPITAL CPALL CP ALL WORK WORKPOINT ENTERTAINMENT BEM BANGKOK EXPRESSWAY AND METRO LPH LADPRAO GENERAL HOSPITAL
Source: www.cgthailand.org Disclaimer: The disclosure of the Anti-Corruption Progress Indicators of a listed company on the Stock Exchange of Thailand, which is assessed by the relevant institution as disclosed by the Office of the Securities and Exchange Commission, is made in order to comply with the policy and sustainable development plan for the listed companies. The relevant institution made this assessment based on the information received from the listed company, as stipulated in the form for the assessment of Anti-corruption which refers to the Annual Registration Statement (Form 56-1), Annual Report (Form 56-2), or other relevant documents or reports of such listed company . The assessment result is therefore made from the perspective of a third party. It is not an assessment of operation and is not based on any inside information. Since this assessment is only the assessment result as of the date appearing in the assessment result, it may be changed after that date or when there is any change to the relevant information. Nevertheless, KGI Securities (Thailand) Public Company Limited (KGI) does not confirm, verify, or certify the accuracy and completeness of the assessment result.
*The Company may be issuer of Derivative Warrants on these securities. 8 November 9, 2018 http://research.kgi.com; Bloomberg: KGIT
KGI Locations China Shanghai Room 1507, Park Place, 1601 Nanjing West Road, Jingan District, Shanghai,
PRC 200040
Shenzhen Room 24D1, 24/F, A Unit, Zhen Ye Building, 2014 Bao’annan Road,
Shenzhen, PRC 518008
Taiwan Taipei 700 Mingshui Road, Taipei, Taiwan
Telephone 886.2.2181.8888 ‧ Facsimile 886.2.8501.1691
Hong Kong 41/F Central Plaza, 18 Harbour Road, Wanchai, Hong Kong
Telephone 852.2878.6888 Facsimile 852.2878.6800
Thailand Bangkok 8th - 11th floors, Asia Centre Building
173 South Sathorn Road, Bangkok 10120, Thailand
Telephone 66.2658.8888 Facsimile 66.2658.8014
Singapore 4 Shenton Way #13-01 SGX Centre 2
Singapore 068807
Telephone 65.6202.1188 Facsimile 65.6534.4826
KGI's Ratings Rating Definition
Outperform (OP) The stock's excess return over the next twelve months is ranked in the top 40% of KGI's coverage universe in the related market (e.g. Taiwan)..
Neutral (N) The stock's excess return over the next twelve months is ranked in the range between the top 40% and the bottom 40% of KGI's coverage universe in the related market (e.g. Taiwan)
Under perform (U) The stock's excess return over the next twelve months is ranked in the bottom 40% of KGI's coverage universe in the related market (e.g. Taiwan).
Not Rated (NR) The stock is not rated by KGI.
Restricted (R) KGI policy and/or applicable law regulations preclude certain types of communications, including an investment recommendation, during the course of KGI's engagement in an investment banking transaction and in certain other circumstances.
Excess return = 12M target price/current price-
Note When an analyst publishes a new report on a covered stock, we rank the stock's excess return with those of other stocks in KGI's coverage universe in the related market. We will assign a rating based on its ranking. If an analyst does not publish a new report on a covered stock, its rating will not be changed automatically.
Disclaimer KGI Securities (Thailand) Plc. ( “The Company” ) disclaims all warranties with regards to all information contained herein. In no event shall the Company be liable for any direct, indirect or any damages whatsoever resulting from loss of income or profits, arising by utilization and reliance on the information herein. All information hereunder does not constitute a solicitation to buy or sell any securities but constitutes our sole judgment as of this date and are subject to change without notice.
*The Company may be issuer of Derivative Warrants on these securities. 9 November 9, 2018 http://research.kgi.com; Bloomberg: KGIT