2011 advertising expenditure (adex) grew less than expected, largely due to softer growth on the TV segment. However, other media platforms performed well. The newspaper segment enjoyed robust advertising spending by retailers, hypermarkets, telcos and property developers, driven by improving consumer sentiment.
OSK maintains OVERWEIGHT on the sector as they belief that 2012 will be an exciting year for media players in light of the upcoming 2012 Olympics and Euro 2012, as well as the impending General Election. Hence, OSK is keeping their adex growth forecast at 2x of GDP growth forecast of 5.2% with Media Chinese as top pick.
OSK also continues to believe that domestic consumer spending will remain healthy given the Government’s ongoing initiatives to turn the country into a highincome nation by 2020.
Below are target price and rating for selected stocks in Media Sector.
|Stocks||Price (RM)||Target price (RM)||Market Cap (RM million)||Rating|
Source : OSK Research