(ASTRO MK/HOLD/RM2.63/Target: RM2.88)

2QFY18 core net profit came in at RM242.0m (+28.7% qoq, +72.2% yoy), primarily due to higher adex growth amid improved advertising spending during the festive season and significantly lower content costs in the absence of the Euro Cup 2016 and one-off renegotiations of content costs during the quarter. Notwithstanding the renegotiation with key providers, content costs are expected to normalise in the following quarters. Maintain HOLD. Target price: RM2.88. Entry price: RM2.60.

Source: UOB Kay Hian Research - 15 Sept 2017