We note that earnings growth in 2017 will be even higher than forecast, since revenue from its new football business is not yet in our 2017 model. We prefer to look beyond this year and see PLANB as a growth stock as it continues to expand, with earnings growth back on track next year. 2Q16 net profit was Bt111mn, down 16% YoY but up 83% QoQ, in line with SCBS and consensus estimates. We expect PLANB to be hurt just this year and have already included it in our 2016 earnings forecast, expecting flat earnings from 2015. The YoY fall reflected primarily a mismatch between rising cost and stagnant sales: It has steadily added capacity, particularly digital, but the bumpy economy has made it difficult to fill up the spots, leading costs to grow more rapidly than revenue, shrinking gross margin and profitability.

Source: The Nation Bangkok August 09, 2016 03:45 UTC