On April 16, 2025, MEB's stock price rose by 2.44%, reaching 21.00 baht, an increase of 0.05 baht. This uptick comes amid a growing trend in e-book readership, which has analysts optimistic about the company's long-term prospects. According to investment analyst Jaroonpan Watthanawong from Liberator Securities, MEB's net profit for the first quarter of 2025 (1/68) is projected at 108 million baht, reflecting a quarter-on-quarter decline of 5.9%. However, this represents a year-on-year growth of 2.6% due to the rising number of monthly active users (MAUs) on its platforms, meb and readAwrite, which have increased by 8.2% and 8.5% year-on-year, respectively.
Currently, MEB boasts a total of 14 million users, with the number of paying users driving revenue growth. The company expects to generate 565 million baht in revenue for the first quarter, marking a slight increase of 0.2% from the previous quarter and an 8.2% rise year-on-year. This growth is partly attributed to the success of the Easy E-Receipt initiative, which has received positive feedback from users despite a reduction in spending limits from 50,000 baht to 30,000 baht.
Even the recent earthquake on March 28, which affected attendance at the book fair held at the Queen Sirikit National Convention Center, did not dampen MEB's outlook. Management believes that the home book fair, occurring simultaneously, will not be significantly impacted. Furthermore, sales of e-readers in the first quarter are expected to remain robust, with year-on-year growth in double digits. MEB anticipates that the digitization trend among both younger and older demographics will continue to drive sales, particularly as users appreciate features that enhance readability.
Despite the anticipated decline in net profit for the first quarter, which is expected to be only 21.2% of the forecast, the company has maintained its revenue target of 508 million baht for the year. Although the first quarter's growth may fall short of management's goal of 10-15%, MEB is confident that the timing of interest income recognition and improvements in gross profit margins (GPM) will help accelerate profit growth to meet projections for the year.
Management has also expressed optimism regarding the growth of LunarWrite, a new application that continues to see increasing download numbers. They expect to gain clarity on whether it will become a new growth curve for MEB within the next one to two years. Analysts recommend accumulating shares for long-term investment, aligning with the ongoing trend of e-book consumption.
In addition, MEB is exploring potential upside from developments in business consolidation, signaling an interest in expanding its market presence further. The target price for MEB shares in 2025 has been set at 33.40 baht, indicating a positive outlook despite short-term fluctuations.
The overall sentiment in the market remains cautiously optimistic as MEB navigates the evolving landscape of digital reading and e-commerce. Investors and analysts alike will be watching closely as the company reports on its progress and adapts to changing consumer behaviors.
