Maybank882016 adex expected to improve Overall, 2015 total gross adex has been weak with the implementation of 6% GST, lower oil prices and weaker MYR hindering any potential adex growth YoY. That said, we expect 2016 total gross adex to exhibit positive adex growth YoY as we enter the new year from a low base. Adex sentiment is also expected to improve with major sporting events (Summer Olympics and UEFA Euro Cup) scheduled to take place in mid- 2016. Our 2016 total gross adex forecast of 5% YoY is based on 1.1x real GDP growth. We remain NEUTRAL on the sector with BUYs on Media Prima (MPR MK; TP: MYR1.53) and Media Chinese International (MCIL MK; TP: MYR0.73) on undemanding valuations of ~10x CY16 PER and ~1x CY16 P/BV. Dividend yields are also attractive at ~6%. http://klse.i3investor.com/blogs/kltrader/90181.jsp
Maybank88Old Chinese educated people may like to read Sin Chew, Nanyang Siau Pao so demand for newspaper always there.
CherrieYou're right! Sinchew is my dad's spiritual food. He needs it every morning. All my chinese neighbours are long term subscribers to either Sinchew/ Nanyang and read it everyday.
I_like_dividendMaybank 2016 stocks pick. Possible special dividend from One Media Group disposal?
CherrieI believe the sale proceeds will be partially used to redeem its bond which will mature in 2017. The remaining will be used to its venture in new business, eg. Property if there is any opportunity.
confuseEducated Malaysians trust business, media more than government, survey finds - See more at: http://www.themalaysianinsider.com/malaysia/article/educated-malaysians-trust-business-and-media-more-than-government-survey-fi#sthash.eE3WNWdm.dpuf
People don't believe media(newspaper) is a stable business even economy slowdown.
CherrieCurrent Market Price of MEDIAC: RM0.72 Current Market Price of One Media: HKD1.42 Current holding of MEDIAC on One Media: 292,700,000 HKDMYR: 0.51
Based on most conservative assumption, if offer price by buyer is HKD1.50 (only 5.6% premium to current market price);
Sale proceed from the disposal: 292,700,000 x HKD1.50 = HKD439,050,000 equivalent to RM223,915,500 (RM0.1327 per MEDIAC share)
Assumption (1): If distribution of 30% to shareholders (MEDIAC's dividend policy of 30%-60%) 30% of RM0.1327 = RM0.03981 per share Existing Dividend = RM0.03757 per share Dividend for 2016 = RM0.03981 + RM0.03757 = RM0.07738 Dividend Yield for 2016 = RM0.07738/ RM0.72 = RM10.75%
Assumption (2): If distribution of 45% 45% of RM0.1327 = RM0.05972 per share Existing Dividend = RM0.03757 per share Dividend for 2016 = RM0.05972 + RM0.03757 = RM0.09729 Dividend Yield for 2016 = RM0.09729/ RM0.72 = RM13.51%
Assumption (3): If distribution of 60% 60% of RM0.1327 = RM0.07962 per share Existing Dividend = RM0.03757 per share Dividend for 2016 = RM0.07962 + RM0.03757 = RM0.1172 Dividend Yield for 2016 = RM0.1172/ RM0.72 = RM16.28%
Lastly, don't forget MEDIAC is in net cash now, since One Media contributed minor loss to MEDIAC in its latest financial results, so the disposal will not have any impact to MEDIAC but positively to its existing net cash position.
CherrieThe Memorandum of Understanding (MOU) which was signed on 4th March 2016 will expire on 16 April 2016. Both vendor and buyer must have an outcome for the offer price on 16 April 2016.
___ireneSebastian Sted, may I know how much KBUNAI did you bought, and when? Thanks.
Sebastian Sted Powerirene, no buy kbunai. Just read that calvin blog last time and found he trying to mislead ppl.
Cherrieyeah....my family and neighbours are long-term subscribers to SinChew and Nanyang. We read it everyday. It monopoly chinese media market. My opinion is the current downtrend since 2H2014 is due to economy downturn but it has created a great opportunity to us to accumulate at low price. Soon after the economy recover, we can enjoy the fruitful.
CherrieIf you study its financial statements, you will find how strong MEDIAC's fundamental is even in this downturn. So, I plan to hold it for long-term. Disposal of One Media has further strengthen its current solid fundamental and increase its capability to venture into new business as they plan.
CherrieMEDIAC's management is aware of the shifting preference of consumers from print media to digital, so they have put afford to transform its business to next milestone by enhancing its digital contents, diversifying in LOGON and well prepared to venture in new business (property/ education).