STOCK FOCUS OF THE DAY
Media Prima : Earnings improve QoQ ahead of SEA Games HOLD
We maintain HOLD on Media Prima (MPR) with unchanged forecasts and but a lower DCF-derived fair value of RM0.92/share (previously RM1.06/share) after lowering the terminal growth rate from 2% to 1%. MPR registered a core net profit of RM9mil in 2QFY17, against the previous quarter’s losses of RM39mil, although the quarterly profit remained in decline on a YoY basis by 67%. This is after stripping out exceptional items amounting to RM141mil, which is in large attributed to a one-off impairment of an associate.
QoQ, revenue in all segments improved ahead of the 29th Southeast Asian Games (SEA Games 2017). We expect earnings in the coming quarters of FY17 to remain resilient as SEA Games 2017 takes place from 19 Aug to 30 Aug 2017 (3QFY17), while 4Q adex gets a boost from year-end sales in the retail and automotive segments. On a negative note however, when asked on dividend guidance, management said that payout is uncertain as the capacity to pay would depend on the result of a solvency test under the new Companies Act 2016. As such, we have trimmed our dividend forecasts from 7.0 sen to 0-3.0 sen for FY17F-FY19F.
QUICK TAKE
Plantation Sector : Key takeaways from Golden Agri’s conference call NEUTRAL
STOCKS ON RADAR
Kronologi Asia, Ideal Jacobs Corp., Ancom, Malton
ECONOMIC HIGHLIGHT
Malaysia : Fairly stable labour market
NEWS HIGHLIGHTS
Edgenta : UEM Edgenta to sell OIC stake
GCB : Guan Chong’s earnings double on lower price
YFG : YFG bags RM235m apartment job but loses RM245m PR1MA project
APFT : APFT aims to return to the black
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.