TA Securities Research.
Results Review
- Asia Media Group Berhad announced its 3QFY11 results of RM3.401mn, which although represents a
sequential decline of 18.8% but grew a superb 63% YoY. Cumulatively, its 9MFY11 earnings came in inline
at 74% of our full year’s forecast.
- The sale of airtime decreased slightly in 3Q but revenue from the programme sponsorship and creative
production increased 95% and 25% YoY.
- Overall earnings margin in 3Q registered a YoY expansion of 7.8% to 40.4%.
Impact
- No impact to our earnings forecasts.
Outlook
- The group plans to launch a terrestrial digital TVstation by as early as the first quarter of next year.
- It is planning to recruit as many as 100 people ‐ (newscasters, talk show hosts, and technical support
people) and plan to rent a studio in Damansara for the live TV version.
- The group is still on track in its plan to submit its listing application to Bursa Malaysia for its migration
to the Main Board.
Valuation
- We maintain our target price at RM0.32/share using an FY12 target PER of only 4x.
- Maintain Buy on the stock, TP: RM0.32
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