Yuanta Securities has lowered its fundamental value for BEC World Public Company Limited, or BEC, from 2.34 baht to 1.70 baht and changed its recommendation to sell, citing a continued slowdown in television advertising revenue. Although the second half of 2026 will be supported by artist events, concerts, foreign licensing, and films, these are expected to offset the decline in advertising revenue only partially. Yuanta Securities has cut its normalized profit estimates for 2026 and 2027 by 30% and 32% to 147 million baht, down 20% year on year, and 170 million baht, up 16% year on year, respectively, after reducing revenue estimates by 20% and 18% to 3.428 billion baht and 3.638 billion baht to reflect weaker-than-expected television advertising revenue and lower gross margin assumptions. BEC is accelerating revenue generation from content and its fan base through a Single Content, Multiple Platforms model, including a partnership with M Studio to release the films Thee Yod: Sing Khao Bok in September and Suk Sutthai in November 2026 as new revenue sources late in the year. However, these new revenue streams remain small relative to television advertising revenue, so the company's ability to generate profit and expand its non-TV revenue share will need to be monitored.
BEC World Public Company LimitedYuanta Securities cuts target price and downgrades to sell on weak TV ad revenue and lower profit estimates.
