• We are ceasing coverage on Media Prima, due to a reallocation of internal resources. Our last call was NEUTRAL with a TP of MYR0.49.

• FY24 results (Jun) recap. MPR’s FY24 results beat our and consensus expectations. The deviation was mainly attributed to improved operational efficiencies that drove margin expansion. Full-year revenue fell 8.6% YoY from 12MFY23 (Jun 2022-Jun 2023), with adex sales down 3.3% YoY due to the soft advertising market and weak home shopping performance (-25% YoY). The impact was offset by net margin expansion of 2.1%, driven by better operational efficiencies and lower operating costs, coupled with lower tax expenses. A 1.5 sen DPS was declared (43% payout ratio).

• Ceasing coverage. Our most recent recommendation was NEUTRAL, with a TP of MYR0.49. The TP incorporated a 4% ESG premium given its ESG score of 3.2. We remain cautious on MPR’s outlook due to the inflationary environment, tightened discretionary spending, and structural challenges afflicting the traditional media industry.

Source: RHB Research - 8 Oct 2024