Friday, December 16, 2011

RHB Research maintains underperform on Media Prima, FV RM2.10

KUALA LUMPUR (Dec 16): RHB Research Institute is maintaining its Underperform on Media Prima with a fair value of RM2.10.

The research house said Media Prima's management believed the current environment looked challenging, given the prevailing debt issues in Europe that have led to advertisers tightening their ad spending.

'Maintaining margins will be one of the key challenges amid rising staff costs,' the research house said.

RHB Research said it was maintaining the earnings forecasts and indicative fair value of RM2.10 based on 12 times CY12 EPS of 17.5 sen.

'Media Prima is vulnerable in the event of an economic downturn from its high exposure to the more expensive broadcasting segment. Maintain Underperform,' it said.

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