OSK Media Sector Stock Picks, Jan 2012

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
Media Chinese 1.13 1.47 1,906.6 Buy
Media Prima 2.56 2.89 2,735.3 Buy
Catcha Media  0.645 1.21 86.8 Buy
Star  3.29 3.23 2,429.9 Neutral


Source : OSK Research

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