Top Story : Media – Feb’10 adex- up 29.1% yoy Neutral
Sector Update:
Media Prima – Fair value unchanged at RM2.23 Outperform
Media Chinese International – Fair value unchanged at RM0.92 Outperform
Star – Fair value unchanged at RM3.60 Market Perform
Astro – Fair value maintained at RM4.30 Underperform (down from TB)
- According to NMR, Feb’s gross adex for TV and print media rose 29.1% yoy with both TV and print media reporting yoy growth of 55.3% and 11.7% respectively. On the whole, we believe this strong yoy growth was mainly due to low base effect as a result of weak economic conditions a year ago.
- Overall, Feb’s print media yoy growth was led by the Chinese dailies, which grew 42.6% yoy with stronger numbers generally posted across the board. The English dailies also recorded better yoy figures (+5.4% yoy), which was led by the Star and Malay Mail, which grew (16.5% yoy and 16.0% yoy respectively). As for the Malay dailies, gross adex declines by 2.6% yoy, mainly due to weaker adex for Utusan(- 7.9%) and Berita Harian (-4.6% yoy).
- Feb’s TV adex was still going strong at 29.1% yoy growth, mainly a reflection of last year’s low base. The stronger TV adex growth was led by TV2 (+120.5%), of which, we believe was aided by their repositioning exercises last year.
- Media Prima (OP, FV=RM2.23) remains our preferred pick as we believe adex(especially TV) will be a prime beneficiary of a recovering economy. We maintain our Outperform call on Media Chinese and Market Perform call on the Star. We have, however, downgraded our call for Astro to Underperform (from trading buy reviously), given that its share price has run up closer to the conditional offer price of RM4.30/share.
- We maintain our Neutral stance on the sector.
RHB Equity 360°(Media, Motor, Sunway City, Glomac; Technical: IRC)-24/03/2010
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