Krungsri recommends buying PLANB with a target of 8.10 baht, expecting profit to jump

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Summary · why it matters

Krungsri Securities has maintained its buy recommendation on Plan B Media Public Company Limited, or PLANB, with a target price of 8.10 baht based on a DCF method and a WACC of 8.1%. It assesses that the investment in iCare, a subsidiary of COM7, has the potential to generate incremental profit of approximately 170 million baht per year after deducting financial costs, representing an upside of about 11% to profit in 2027. If profit share before financial costs is considered, it is expected at approximately 200 million baht per year, or an upside of 11-13%. PLANB subscribed to 1,126 million newly issued iCare shares worth 860 million baht at 0.764 baht per share, giving it a 46.28% stake after the capital increase, with COM7 holding an equal proportion. Krungsri stated that the purchase price of the iCare shares represents a P/E of only 6 times, below the insurance business group average of 9 times, and it expects PLANB's net profit in 2026 and 2027 to grow 14% and 25% respectively from recognition of its profit share from COM7. These projections do not yet include the positive effects of the iCare deal, which therefore represents upside to the previous profit forecast for 2027. However, the share purchase still requires approval from the shareholders' meetings of COM7 and iCare, as well as consent from the Office of the Insurance Commission, or OIC. The process is expected to be completed by the end of 2026, and iCare will not have the status of a subsidiary of PLANB.

Impact on assets 3

Communication Services▲
Plan B Media PCL
PLANB
▲ PositiveCapitalrelevance

Krungsri maintains buy with 8.10 baht target, citing the iCare stake adding ~170M baht annual profit and lifting 2027 profit forecasts

Consumer Discretionary▲
Com7 PCL
COM7
▲ PositiveCapitalrelevance

PLANB's 860M baht subscription for 46.28% of COM7's subsidiary iCare at a low P/E, pending COM7 shareholder and OIC approval, is a valuation/financing event for COM7

Financials▲