YEG - Outlook unclear
YEG’s share price has been on investors’ minds since its IPO in June 2018. Its business model however remains misunderstood by many. We hope this report will bring some clarity.
Despite a 65% correction from its peak, the stock is trading at a current P/E of 23x, unattractive compared to forecasted growth in our opinion.
YEG is only suitable to investors who really understand the industry. The potential of the digital media market is huge, but only players with a strong business model will benefit in a sustainable way. YEG's limited contribution to channels/publishers as well as loose relationship with platforms and content creators are risks to the company’s current revenue sharing model.
If YEG can retain its MCN status, the stock price may recover but the above limitations remain nonetheless. We believe, the company’s success will depend largely on its ability to produce and monetize its owned and operated content, in addition to developing distribution channels inside and outside Youtube / Google. Until we have more visibility, we have a MONITOR recommendation on the stock
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
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