They have monopolized the media, too difficult not to make profit... :) TV: TV3, 8TV, ntv7 and TV9 Newspaper: New Straits Times, Berita Harian and Harian Metro Radio: Fly FM, Hot FM and One FM Outdoor advertisement: Big Tree Outdoor Sdn Bhd, UPD Sdn Bhd, Right Channel Sdn Bhd, Kurnia Outdoor Sdn Bhd and Jupiter Outdoor Network Sdn Bhd.
Look a Singapore Press Holding of Singapore and look at Media Prima. Management counts. Good only management is change for better. Preferably some Singapore management.
Key takeaways from Media Prima’s 2QFY14 briefing We were among 15-20 analysts and fund managers that attended Media Prima’s 2QFY14 briefing at Sri Pentas, Petaling Jaya, yesterday. The briefing was hosted by Dato’ Amrin Awaluddin, group Managing Director. Also present was group CFO, Mr Mohamad Ariff Ibrahim. We were negatively surprised to learn that management has not anticipated the poor performance in the quarter given the seasonal pick-up in adex in 2Q. However management remains hopeful that 2H will be better despite the weak performance in 1H. Management shared its strategy to grow the group’s revenue base by targeting more non-traditional advertisers in the future, and managing costs efficiently by having sharing ads with content providers). Although we expect 2H to be stronger, we are cautious on the negative impact on consumer sentiment following another unfortunate event of MH17, along with the GST implementation and subsidy rationalisation. We suspect that there could be another delay in advertisers’ budget spending if consumer sentiment does not recover. Nevertheless, we think that Media Prima is still on track to capture the consumption shift to digital platforms through its Tonton online platform. Tonton subscribers grew by 27% yoy from 3m in 1H13 to 3.8m in 1H14. We think there is potential for Media Prima to monetise this subscriber base. However, we think that the company is still searching for the best way to monetise its subscriber base. In addition, Media Prima is expected to launch its new pay-per-view service, called “Tonton Premium”. We think this could be a positive growth driver for the company if it is able to convert regular subscribers into paying subscribers. Earnings revision Following the poor earnings performance in 2Q14, we cut our FY14-16 net profit forecasts by 8-9%. Hence, we expect FY14 earnings to fall by 8% yoy due to lower adex, especially in the traditional media platforms of TV and print. We expect the combined adex revenue for both to be flat. In addition, we expect earnings to recover from FY15 onwards, driven by a recovery in adex and cost saving initiatives, especially in managing its bandwidth cost. Valuation and recommendation We downgrade Media Prima to Hold from Add, with a lower target price of RM2.52 from RM3.05, based on 13x CY15 P/E, which is a 20% discount to the implied target market P/E of 16.1x (vs. 10% previously). We expect the prolonged weakness in consumer sentiment from the GST implementation and subsidy rationalisation to delay adex spending, as we underestimated the impact on Media Prima’s earnings in 1H14. Furthermore, we think that weakness in its earnings performance could also negatively impact its dividend yield.
I'm looking at this situation in a way that momentum investors are selling out to generate more cash to throw at hotter stocks. And media fortunately is the stock that is being rejected by momentum investor, thus created this sudden low which is coupled by their financial statement and the effects of the global market. However, if I had more money, I would start collecting because business in the end, still needs to advertise.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
jack_ng
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Posted by jack_ng > 2011-11-15 15:02 | Report Abuse
They have monopolized the media, too difficult not to make profit... :)
TV: TV3, 8TV, ntv7 and TV9
Newspaper: New Straits Times, Berita Harian and Harian Metro
Radio: Fly FM, Hot FM and One FM
Outdoor advertisement: Big Tree Outdoor Sdn Bhd, UPD Sdn Bhd, Right Channel Sdn Bhd, Kurnia Outdoor Sdn Bhd and Jupiter Outdoor Network Sdn Bhd.