CIMB Research sees Asia Media worth 53 sen
Written by theedgemalaysia.com
Tuesday, 07 June 2011 08:43
KUALA LUMPUR: CIMB Equities Research said Asia Media, Malaysia’a
largest transit TV operator, offers a good growth story in a small but
fast-growing media segment.
It said on Tuesday, June 7 that another key attraction is the group’s
exposure to the public transportation upgrade in the Klang Valley which
will allow it to expand its services to the LRT and MRT systems.
“Tagging a 40% discount to our 14.5x target P/E for the larger media
companies under our coverage, we get a CY12 P/E of 8.7x. Based on
an estimated CY12 EPS of 6 sen, the stock could be worth 53 sen,
which suggests attractive upside of 88%.
“The stock is trading at cheap CY12-13 P/Es of 4-5x and could be
catalysed by strong quarterly numbers or success in securing the
licence to operate on the LRT. Asia Media provides investors with an alternative exposure to growing media segments other
than FTA TV and newspaper,” it said.