MNCN - A better year ahead

KBVS Update
Monday, 26 February 2024

MNCN: A better year ahead 
(Assign BUY call with TP: IDR395)

•    We expect MNCN to record better performance this year stemming from waning effect of ASO policy, strong consumer sentiment ahead Eid as well as more certainty over domestic politics that should prop up ads spending.

•    In addition, RCTI's Euro '24 exclusive rights should boost its audience share and in 2Q24 which we expect to be above c. 35% during the event, or historically in-line with ’21 event.  

•    We expect the company’s exclusive rights to broadcast Euro ’24 should result in substantial subs growth for the SVOD Vision+ as well as RCTI+ for non-match, while it also provides an opportunity for higher monetization.

•    To accelerate OTT scalability of monetization efforts, the company has integrated accessibility of RCTI+ and Vision+ on its both apps, aiming to enhance subs-base.

•    We assign our BUY call with a DCF-based target price of IDR415 per share (WACC: 13.8%; LT growth rate: -1%). Note that at our price target, it implies 4.7x of PE '24, while it is currently trading at 4.5x forward PE '24, which is below -1SD 5-year historical mean, or rather undemanding.

Regards,
Devi Harjoto – KBVS Research Team