Affin Hwang Capital Research Highlights

Astro – Increase in HD fees by 25%

kltrader
Publish date: Wed, 12 Nov 2014, 03:35 PM
kltrader
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This blog publishes research highlights from Affin Hwang Capital Research.

Astro Malaysia Holdings Bhd announced that it will revise the HD fee to RM25 from RM20 starting next month. This is the first hike in HD price since  2009.  However,  Astro  said  that  the  overall  prices  will  not  be impacted in 2015 once GST is implemented as the 6% of service tax will be converted into GST. (Source: New Straits Times)

Comment:  We  are  positive  on  this  as  it  will  help  to  increase  Astro’s ARPU  going  forward  (2QFY15:  RM98.0).  Currently,  61%  of  Astro customers  are  subscribing  to  the  HD  package.  This  is  consistent  with management’s  guidance  of  lifting  ARPUs  going  forward.  We  have  also built  in  a  RM3  increase  in  blended  ARPUs  into  our  FY16  forecast  to capture  some  of  the  price  hikes  and  hence  leave  our  forecasts unchanged  for  now.  However  worth  noting  is  that  some  of  the  price impact  may  be  diluted  as  consumers  downtrade  amidst  rising  inflation and weaker consumer sentiments. Maintain our ADD rating on Astro with a target price of RM3.70.

Source: Affin Hwang Capital Research - 12 Nov 2014

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jayrc23

I will unsubscribe...money mongers...quality the same...

2014-11-12 18:23

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