STOCK FOCUS OF THE DAY
Star Media Group : Value surfacing as selldown overdone BUY
We upgrade Star Media Group (Star) from HOLD to BUY with an unchanged forecasts and fair value of RM1.88/share based on SOP. We believe the recent selldown of Star shares is overdone in spite of duller prospects without Cityneon. At the current price, Star offers attractive upside and dividend yield, which are estimated at 6-8%.
Star's 3QFY17 core net profit from continuing operations came within our expectations, but below consensus, at RM4mil (nil QoQ, -71% YoY). This brings 9MFY17 core net profit to RM5mil (-89% YoY), accounting for 56% of our full-year forecast and 14% of consensus estimate. We have stripped out gains on disposals of Cityneon and other quoted investment(s) as well as a forex gain in deriving the core net profit. Collectively, these items amounted to RM214/RM215mil in 3QFY17/9MFY17. We have also excluded earnings from Cityneon (discontinued operations) in our core profit calculations.
At the current price, Star offers good value with a price-to-cash of 0.33x (net of borrowings and dividend payable) and a price-to-book (P/B) of 0.99x, which is below its 3-year average P/B of 1.25x.
Others :
Sunway Construction : 9MFY17 net profit grows 16% YoY BUY
Sasbadi Holdings : Future-proofing HOLD
APM Automotive : Lacking a growth story SELL
Property Watch : The Robertson, Jalan Pudu, KL
ECONOMIC HIGHLIGHT
Thailand : Attractive equity market, economy catching up
NEWS HIGHLIGHTS
Property Sector : A debatable freeze
Kronologi : To provide data back-up for Temasek unit
Zecon : To sell 49% stake in hospital concession for RM155mil
Supermax : Bullish on contact lens business
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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