MEDIA (TP RM2.60– BUY) - OSK

The Media’s Next Prima Donna Over the years Media Prima (MPB) has transformed from a single media entity into an integrated media group with presence across all media platforms. As an integrated media group, we see MPB as the best proxy to the entire media sector, which is expected to grow in line with the country’s growing economic prosperity. As such, we initiate our coverage on MPB with a BUY recommendation at a TP of RM2.60, based on a regional sector PER average of 18x FY10 EPS. With some of its regional peers trading at more than 20x PERs, we do not discount the possibility of an upward PER rerating as MPB is the only proxy to the country’s fast growing broadcasting industry, especially after the upcoming privatization of Astro.