BEC share price rockets up over 70%
The share price of BEC World (BEC) was up more than 70 per cent this month on Thursday, amid expectations of improved company performance next year.
The price of shares in the media/entertainment firm had risen to Bt7.90 at close on Thursday, more than 70 per cent up on the Bt4.62 price at the end of November.
KTB Securities senior director Mongkol Puangpetra said the rise was down to restructuring that saw BEC World change its executives and lay off employees.
"Most importantly, the company sold 119.99 million BEC-Tero Entertainment Plc shares, which accounted for 59.99 per cent of the capital to boost its financial position," he said.
BEC's digital TV business would also improve from a rise in advertising revenue next year, he added.
“Therefore, we forecast the company’s net profit next year will be Bt459 million, up from a net loss of Bt371 million [this year]."
However, he advised investors to take profit at a ceiling of Bt8.70 per share, citing limited upside room.
BEC shares rose sharply on third-quarter profits of Bt60 million, moves to reduce costs, revenue from selling drama rights to overseas and online platforms, and sales of BEC-Tero Entertainment shares.
"We expect BEC to gain profits next year because BEC-Tero Entertainment shares were sold at a price higher than book value, while the company was boosted by news that popular former TV show host Sorayuth Suthassanachinda will be released from jail next year," the brokerage firm said.
Securities and Exchange Commission (SEC) records show 64 million BEC shares worth Bt327.58 million were bought by BEC executives Nipa Maleenont, Rattana Maleenont and Amporn Maleenont, daughters of the company’s founder, Vichai Maleenont.
