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Workpoint Entertainment
Kim Eng Securities (Thailand) has maintained its "buy" rating on Workpoint Entertainment stock, with a fair value of Bt26.
The company, as a leading television production house, has growth potential and high profitability with a net margin of 22 per cent and a return on equity of more than 30 per cent. Its financial status is strong, with a solid cash flow and a net cash position. Workpoint has airtime of 1,287 minutes per week from 17 programmes broadcast on four free-to-air stations, Channels 3, 5, 7 and 9. Sixty per cent of the total broadcast air time is during prime time with ad rates between Bt200,000 and Bt260,000 per minute. Very favourable audience ratings may allow an ad-rate hike averaging 8 per cent to 10 per cent for some of these programmes. The broker says the company has won additional air time of two and a half hours per week, starting next year. An existing programme on Channel 5 - "Fan Pan Tae" - will be extended by 30 minutes. The company is also likely to get a two-hour slot on Channel 7 during prime time on Tuesdays, in a 50-per-cent time-sharing arrangement with a partner. The broker sees a new source of income generated from a new programme format and a tie-in programme.
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