Tuesday, February 28, 2012

Star Publications (M): Maintain Hold - Dependable dividends distributor

High dividend yields limit downside risk. Star's reported earnings were within expectations. Earnings were flat YoY due to mediocre adex growth that was insufficient to offset higher newsprint costs. We trim our earnings estimates by 3%-4% p.a. on 'housekeeping' changes, and introduce our 2014 estimates. We maintain our Hold call, on stable and attractive net dividend yields of >5.5%. Our TP is little changed at RM3.35 (-1%) as we roll forward our DCF based TP to end-2012.

Maybank Research 28 Feb 2012

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