KUALA LUMPUR: Shares of MEDIA PRIMA BHD [] declined at mid-morning on Friday, May 13 after its net profit for the first quarter ended March 31, 2011 fell 23.7% to RM34.79 million from RM45.57 million a year ago, in line with general seasonal advertising trends.
At 10.30am, Media Prima shed two sen to RM2.66 with 258,800 shares done.
Revenue for the quarter rose to RM354.19 million from RM323.67 million in 2010. Earnings per share werea 3.36 sen while net assets per share was RM1.27.
Reviewing its performance, Media Prima said on Thursday, May 12 that the first quarter of the year had always been the lowest in terms of advertising spending as compared to other quarters, when most advertisers start their promotional roll out.
MIDF Research has downgraded Media Prima to Neutral with a lower target price of RM2.70 (from RM2.80).
'We are maintaining our FY11 and FY12 top line estimates. However, to reflect the lower negative''goodwill, we are revising downwards our FY11 and FY12 net profit estimates by 26.6% and 20.0%.
'Although, we believe Media Prima will register growth operationally, we are downgrading''Media Prima to Neutral due to the recent run up of its share price. Our adjusted target price is based on PE/Growth ratio of 0.85 times, based on average PEG of its regional peers,' said MIDF Research in a note May 13.
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At 10.30am, Media Prima shed two sen to RM2.66 with 258,800 shares done.
Revenue for the quarter rose to RM354.19 million from RM323.67 million in 2010. Earnings per share werea 3.36 sen while net assets per share was RM1.27.
Reviewing its performance, Media Prima said on Thursday, May 12 that the first quarter of the year had always been the lowest in terms of advertising spending as compared to other quarters, when most advertisers start their promotional roll out.
MIDF Research has downgraded Media Prima to Neutral with a lower target price of RM2.70 (from RM2.80).
'We are maintaining our FY11 and FY12 top line estimates. However, to reflect the lower negative''goodwill, we are revising downwards our FY11 and FY12 net profit estimates by 26.6% and 20.0%.
'Although, we believe Media Prima will register growth operationally, we are downgrading''Media Prima to Neutral due to the recent run up of its share price. Our adjusted target price is based on PE/Growth ratio of 0.85 times, based on average PEG of its regional peers,' said MIDF Research in a note May 13.
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