Affin Daily Insight (LV) - 21 March 2014 - MEDIA / SPSETIA / TOPG / BENALEC / DMR

Top Calls

Sector Update � Media (NEUTRAL, maintain) - Riding on World Cup to support adex Affin projects advertising revenue for 2014 to grow on par with the country�s GDP growth (Affin 2014 GDP growth forecast: +5.0-5.5% yoy), which implies a below average adex/GDP multiplier of 1.0x. Broadly, we expect weaker business and consumer sentiments to affect adex. However, mega events that are taking place this year could provide some respite. On a more positive note, newsprint prices have remained relatively stable and at attractive levels for the print companies. Without any major re-rating catalysts for the sector, we remain NEUTRAL. Key re-rating catalysts for the media sector include: 1) higher Malaysia GDP growth; 2) sharp fall in newsprint prices; 3) significant improvement in newspaper circulation; and 4) significant increase in advertising revenue. Our preferences for sector exposure are Astro (ASTRO MK, RM3.08, ADD; RM3.25 TP) and MCIL (MCIL MK, RM0.91, ADD; RM1.15 TP) over Media Prima (MPR MK, RM2.35, SELL; RM2.29) and Star (STAR MK, RM2.46, SELL; RM2.20 TP).

Other Calls

Results Note � SP Setia (REDUCE, downgrade) - A prelude to further margin compression

Results Note - Top Glove (REDUCE, downgrade) - Hurt by low ASP and unfavourable product mix

Flash Note � Benalec Hldgs (TR BUY, maintain) - Selling 128.5 acres of land in Melaka for RM235m

Debt Market Research - Profit taking despite high demand for GII 5/24 reopening

Morning News & Market Summary

For important disclosures, please refer to the Disclosure section at the end of the individual linked research reports.

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