ASTRO MALAYSIA HOLDINGS BERHAD KLSE (MYR): ASTRO (6399) - THE DIVIDEND GEM
Dividend stock - ASTRO
Astro Malaysia Holdings Bhd is an entertainment holding company, operating in the diversified media industry. The company's business segments include television, radio, Homeshopping and others. The television segment provides content, creation, and aggregation of media. Additionally, it provides magazine publication and distribution. The radio segment provides radio broadcasting services to customers.
1) Astro and Telekom have entered into a collaboration in delivering high-quality digital experience to all Malaysians through the provision of reliable broadband and content services.
2) Astro signs Netflix as new streaming partner
3) The Intellectual Property High Court in Kuala Lumpur has declared that the sale and distribution of TV boxes or illicit streaming devices (ISDs) that can provide unauthorised access to copyrighted works constitutes a copyright infringement under the Copyright Act 1987.
4) Walt Disney picks Astro for Disney+ Hotstar
5) Ad-spend rising higher than expected and the 15th General Election possibly taking place in 2022, boosting the ad market.
6) Inflationary pressure on raw material cost compressing the operating margin of sectors such as consumer and manufacturing, investors who look for inflation-resistant havens could find the media sector to be appealing as their cost base (content cost) are largely unaffected by inflationary pressure.
7) Astro dividend yield may more than EPF return, extimately 6.5-8% per annum.
8) We expect a better Q4 FY22 from the economic reopening and rebound in advertising expenditure (adex).
9) Media Prima Bhd’s recent positive results indicates to us that we can expect not dissimilar results from Astro when it reports 4QFY1/22 results on March 31, 2022.
10) EPF keep buying recently, as 11 MAC 2022, they are holding 339,344,100 units
1) Content cost to increase on FIFA World Cup Qatar 2022
2) High inflation pressure will reduce the subscription from ASTRO
EP: RM 0.99-1.02
SP: RM 0.98
TP: RM 1.13/1.18/1.26
a) Trend: Mid term uptrend, long term sideway
b) MA5,10 & 20 cross above MA50
Holding period: 9 months - 1 years
Potential Return if bought at RM1.00:
TP1: RM 1.13 + 7 cents dividend (Extimation) = 20%
TP2: RM 1.18 + 7 cents dividend (Extimation) = 25%
TP3: RM 1.26 + 7 cents dividend (Extimation) = 33%
Broker houses target price:
1) CIMB RM 1.45
2) Maybank RM 1.47
3) HLG RM 1.40
4) Kenanga RM 1.07