JKN Gains 7%, Analyst Reaffirms “BUY” Rating, Expecting Net Profit of ฿400Mn in 2021

The share price of JKN Global Media Public Company Limited (JKN) rose ฿0.70/share or 6.93% to ฿10.80/share with a trading value of 258 million baht.

 

According to Kingsford Securities’ research on May 17, JKN’s 2Q21 earnings outlook may remain nearly flat quarter over quarter but increase year over year. JKN had a backlog of 735 million baht for program rights as of the end of the first quarter, which would generate revenue until 3Q21.

Net income for the full year is forecast to be 401 million baht (+28% YoY), primarily due to a 10% growth in content rights revenues in line with the company’s strategy of developing overseas markets, as well as a 200 million baht revenue from new business (CBG drinks). As a result, Kingsford recommends “BUY” rating on JKN.

 

In addition, the Board of Directors’ Meeting of JKN held on May 14, 2021 has resolved to  acknowledge the change of the name of the company’s subsidiary from “DN Broadcast Company Limited” to “JKN Best Life Co., Ltd.” which has been registered with the Department of Business Development, Ministry of Commerce on April 26, 2021 and the change of the nature of business operations of JKN Best Life. Previously JKN Best Life merely operated the business of digital TV station, but currently, JKN Best Life has  expanded the business operation to the digital TV station and manufacturing and distribution of health, beauty and consumer products.

Meanwhile, approved the cancellation of the acquisition of all shares in JKN Global Living Network Co., Ltd. from the existing shareholders of JKN Global Living, namely; (1) Mr. Jakkaphong Jakrajutatip; (2) Miss Pimauma Jakrajutatip; and (3) Mrs. Pitsamai Likhitumnouy pursuant to the resolution of the Board of Directors’ Meeting Held on October 26, 2020. It would be appropriate if JKN Best Life, a subsidiary of the company, which is now expanding its business operations in terms of the sale of health, beauty and consumer products purchases only inventories and goods in process, including trademarks in health and beauty products, as well as all consumer products from JKN Health & Beauty Co., Ltd. and JKN Genius Family Co., Ltd., a subsidiary of JKN Global Living, instead of acquiring JKN Global Living shares.

In this regard, the cancellation of the resolution and restructure of such investment is to eliminate the connected operation and to increase agility, reduce redundancy in business operations, it would be better if the company’s subsidiaries operate a business of distribution of health, beauty and consumer products which will expand the business of JKN Best Life and create the overall benefits of the company.