Monday, July 21, 2014

Affin Daily Insight (LV) - 21 July 2014 - ASTRO / ECONOMY - US OUTLOOK / DMR


Top Calls

Company Update Astro (ADD, maintain)

- Rising household penetration and ARPU

MEASAT Global Berhad has deferred the launch of MEASAT-3b to Sept-14, mainly due to manufacturer of MEASAT-3b co-passenger requesting time to repair their satellite. Due to this, the delivery of 8 transponders for Astro in the first year has been postponed, and the Group might have to delay their plans to increase more HD channels this year. Meanwhile, Astro
s NJOI has been gaining popularity and we believe that the Groups target for 20% TV household penetration in 5 years time is achievable for the NJOI segment. The pay TV subscribers and ARPU are also still on an upward trend. We opine that Astros ARPU is likely to grow further on the back of increased take-up of its HD channels, PVR, multiroom and Superpack & Valuepack packages. Maintain our ADD recommendation on Astro and DCF-derived target price unchanged at RM3.70.


Other Calls

Economy US Outlook Weekly Wrap (14 18 July 2014)

- US housing starts and permits unexpectedly fell in June

Debt Market Research

- Buying continues especially on GII 5/24 despite higher risk premium


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