Executives of VGI Global Media (VGI) and Master Ad PLC (MACO) led a team of over 30 analysts and fund managers to showcase VGI Malaysia’s strong media footprint in Kuala Lumpur, Malaysia.
Mr. Phoon Chiong Kit, Chief Executive Officer of MACO, on behalf of the management team, said, “VGI Global Media (Malaysia) Sdn Bhd (VGM) is one of the biggest out-of-home media providers with exclusive long-term concession rights and numerous subsidiaries in Malaysia and Indonesia. Similar to VGI PLC’s exclusive contracts with the BTS skytrain network in Thailand, VGM holds a 10-year concession to manage advertising space across the MRT SBK train line, which is Malaysia’s newest mass rapid transit system, as well as a 7-year exclusive right to operate media at Kuala Lumpur International Airport (KLIA).”
At present, the company is in the process of converting its static billboards at KLIA into digital LED screens with smart control technology offering optimal advertising solutions that have been very well received by clients. “Given our strong performance, we aim to increase our customer base from 70 to 120 firms in the near future,” said Mr. Chiong Kit.
Meanwhile, analysts from Kasikorn Securities PCL have quoted MACO’s share price at THB 2.30, citing the company’s solid growth revival in the third quarter of 2018 and more positive growth forecast for 2019. In addition, the merger of VGM and the financial statement of Trans.Ad Solutions Co., Ltd. is expected to raise MACO’s P/E to 15.79 times earning in 2019 in comparison to PLANB’s P/E of 28.44 times and VGI’s P/E of 41.19 times.
Similarly, Maybank Kim Eng’s analysts have quoted MACO’s share price at THB 2.54 with P/E of 23.5 times earning, citing the upside from the company’s short-term profit margins in the next 12 months (which resulted from ongoing upgrade of its street furniture) and its long-term profit margins (resulting from acquisition of stocks of affiliated companies, namely Trans.Ad and GSC), along with the expansion of its media business abroad especially in Malaysia and Indonesia through joint investment with VGI in VGM.*
