STOCK FOCUS OF THE DAY
Star Media: Substantial savings to lift earnings in FY18 BUY
We reiterate our BUY recommendation on Star Media Group (Star) with unchanged forecasts and FV of RM1.80/share based on sum-of-parts valuation. We came away from Star's 4QFY17 briefing feeling reassured that an earnings recovery is underway. However, we do not discount the possibility of further kitchen-sinking going forward, especially with respect to headcount and printing facilities.
The group has not provided dividend guidance for this year, but we remain sanguine that it will pay out at least 6 sen, implying a decent dividend yield of 4.6%. However in the longer term, prospects of the group remain bleak. Nevertheless, we believe Star is oversold at the current price. The company offers good value with a net cash per share of RM0.51 and a price-to-book (P/B) of 1.1x, which is below its 3-year average P/B of 1.25x.
Others :
Press Metal: Facing some headwinds HOLD
QUICK TAKE
Plantation Sector: Key takeaways from palm oil conference – Day 1 NEUTRAL
RETAIL RESEARCH
Stocks On Radar: IOI Corporation, Bumi Armada, Kerjaya Prospek, Salutica
ECONOMIC HIGHLIGHT
Australia: How will AUD perform against USD with no rate hike?
NEWS HIGHLIGHTS
Berjaya Corp: Sells entire DSG stake for RM266mil
Eita: Bags contracts worth RM126m for LRT3 project
Eforce: Major shareholders up stake
MMC Corp: Northport, Southpoint concession extended
DISCLAIMER:
The information and opinions in this report were prepared by AmInvestment Bank Bhd. The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmInvestment Bank Bhd. Bhd may from time to time have a position in or with the securities mentioned herein. Members of the AmBank Group Bhd and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice.
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