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Tuesday, June 14, 2011

Asia Media shares active, unch on placement concern (Edge)

Shares of Asia Media were actively traded in afternoon trade on Tuesday, June 14 but the share price was range bound on concerns about the proposed placement of 35% of the paid-up.

The proposed private placement would entail the issuance of up to 79.80 million new shares to identified Bumiputera investors.

IMB Equities Research had on June 7 said Asia Media, Malaysia’a largest transit TV operator, offered a good growth story in a small but fast-growing media segment.

Another key attraction is the group’s exposure to the public transportation upgrade in the Klang Valley which will allow it to expand its services to the LRT and MRT systems.

“Tagging a 40% discount to our 14.5 times target price-to-earnings for the larger media companies under our coverage, we get a CY12 P/E of 8.7 times. Based on an estimated CY12 EPS of six sen, the stock could be worth 53 sen, which suggests attractive upside of 88%.

“The stock is trading at cheap CY12-13 P/Es of 4.0 times to 5.0 times and could be catalysed by strong quarterly numbers or success in securing the licence to operate on the LRT. Asia Media provides investors with an alternative exposure to growing media segments other than FTA TV and newspaper,” it said.

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