Astro's long-term prospects improving, says HLIB

KUALA LUMPUR (July 25): Hong Leong Investment Bank (HLIB) Research has maintained its “buy” rating on Astro Malaysia Holdings Bhd at 89 sen with an unchanged target price (TP) of RM1.34 and said with the recent launch of Astro’ s addressable advertising alongside its fibre broadband service as a standalone product in May 2022, the group’s long-term prospect seems to be improving.

In a note on Monday (July 25), the research house said with a diversified revenue stream as well as an improved and more efficient advertising solution for clients, Astro is increasing its competitive advantage.

“Maintain 'buy' with an unchanged DCF-based TP of RM1.34 (WACC: 8.6%, TG: 0%). In addition, Astro’s attractive dividend yield of 8.4% provides a solid share price downside support,” it said.