Buy Media Prima: OSK, ECM

OSK Research and ECM Libra have maintained a "buy" call on Media Prima Bhd following the company's better than expected nine-month financial performance.

"The company registered a core net profit of RM110 million for its nine-month financial period, which was above our expectation and accounted for 83 per cent of our net profit forecast for financial year 2010," said OSK Research in a research note today.

"Without consolidating the revenue from NSTP and Kurnia Outdoor, Media Prima reported a 22 per cent year-on-year increase in revenue supported by revenue growth from all of its other media platforms such as television, radio and outdoor media," it said.

OSK Research has revised the company's financial year 2010 and 2011 earnings forecast by 18 per cent and 12.9 per cent respectively, with a higher target price of RM3.30.

Meanwhile, ECM Libra mentioned in a research note, that Media Prima had revised its dividend policy and going forward, paying twice a year.

"Assuming a 75 per cent net dividend payout ratio (DPR), investors can expect another six sen net dividend per share (DPS) or three per cent dividend yield at year. -- Bernama

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FBMKLCI: 1503.54 DJ: -15.52 CRUDE OIL: 81.49 RM: 3.116

YTL Communications is seeing “dramatic” demand for its WiMAX service in Malaysia, with pre-registrations for the product exceeding expectations three times, said executive chairman Tan Sri Francis Yeoh. Yeoh declined
to give a specific target for the “yes” wireless Internet and voice service.

 

MEDIA, the country's leading newspaper publisher and broadcaster, broke the RM1 billion sales barrier for the first time in its history, posting RM1.13 billion in sales for the nine months ended September 2010. Media Prima plans to pay an interim single-tier dividend of 4 sen per share to shareholders before year-end to reflect the significant rise in earnings and profits, as well as an acknowledgment of shareholders' support.

Carrefour has suspended the sale of its Malaysian and Singapore stores after bidders, including Japan's Aeon Co Ltd, offered too little to persuade the French retailer to part with the operations, two sources said. Carrefour rejected offers in a second round of bidding that closed on 5 Nov and informed the potential buyers that the sale process has been put on hold, according to sources.

Proton, which is set to take a 25% stake in Renault Formula One team, is seeking to expand its relationship with the Renault-Nissan alliance into passenger cars and potentially as a strategic partner to the national auto
company. Plans are afoot to have Renault-Nissan involved in the Proton global car, named Emas, which is slotted for production by 2012.