After sharing my first insight about Star Publications (Star, 6084) more than 14 months, Star Publications, fundamentally, appears to be the same. Since the market price has reached its another historical low (from my last review of RM2.60 to RM2.10++) , I decided to spend some time to take a look at Star Publications, again.
Business Prospect
In terms of its business prospect, the group aims to offer better advertising platforms to extend their reach to wider audiences via the Print, Digital, Broadcasting and Television channels. Basically, I really do not think there will be many new audiences from any these channels, except the Digital.
Particularly, most of us have changed the ways of our living - Google, Surfing, Youtube, Facebook etc. In near future, maybe, we will be more smartphone-oriented - Whatsapp, Line, etc.
Brainstorm Question
If you are advertisers, which advertising platforms you will choose to reach your new audiences (new generation, maybe)?
(a) Print, Digital, Broadcasting and Television channels
(b) Internet - Google, Surfing, Youtube, Facebook etc
(c) Smartphone-oriented - Whatsapp, Line, etc
(Note: To share your intuitive answer, please use the comment box below)
The most Concern from me
I should highlight that the major contributor of Star (6084) is its Print and digital in fiscal year 2013 and 2012 (I think it was the same for previous years). Thus, I am quite not interested in its other segments.
As I mention, I am positive to Digital segment. However, so far, the revenue from Digital segment was only less than 4% (in revenue) compared to the Print segment. What strategies Star Publication may or can take to improve its competitiveness in the Digital segment in the future? So far, I did not see one.
The proof of pudding is in the eating. As long as I cannot foresee any promising change from Star Publication, my insight about Star is still the same as what I reviewed previously in Star Publications (Star, 6084): Investing Insight.
As an investor, I always look forward to finding good business for long investment. I already observe Star more than 14 months. This is indeed a very challenging era for mass media. However, it is a very wonderful era for most consumers to enjoy lots of information from Internet without or with tiny charges. Hopefully, in the future, there will be some things interesting about Star Publications that is worth to be shared with you. That's all for today. More fascinating articles and sharing will be updated weekly in Xaivier Blog. So, you are welcome to subscribe our feed to receive our weekly updates.
Written by: Xaivier Chia
http://xaivierchia.blogspot.com/2014/03/star-publications-star-6084-mini-review.html
vaentec
Agree. That's why I have been caution about the stock even when the dividend given is about 6-7%. What we want here is consistency. I think the online revenue is still very weak even though it has improved. It might not be able to catch up with the decline in print business.
2014-03-14 17:22