Media (Neutral NEW)
2012 to be a quiet year
- Adex growth to moderate… Jan-12 Adex fell by -10.2% YoY, continuing the downwards trend in Adex growth.
- We believe that Adex growth will only pick up when there is more clarity on the global macro outlook, which in turn will reinforce confidence in businesses to invest in Adex.
- Newspaper Adex dominates… The overall Adex market is worth ~RM8.3bn and newspaper medium still commands the lion share, making up ~53%.
- TV Adex is catching up… The next biggest Adex market is the FTA TV segment with 36% (~RM3bn) of the total Adex market. FTA TV Adex has been gradually increasing its share in the industry over the years because of growing affluence in the population whereby ~90% of the ~6.1m Malaysian household owns a TV.
- With slowing Adex growth and lack of confidence within the business community to commit on additional Adex spending, we are NEUTRAL on the sector.
- Hence, we initiate coverage on:
- Media Prima with a SELL at TP: RM2.34;
- Star with a HOLD at TP of RM3.27; and
- MCIL with a HOLD at TP of RM1.26
Source: HLIB Research 6 March 2012
Adex growth to moderate' Jan-12 Adexfell by -10.2% YoY, continuing the downwards trend in Adex growth.
ReplyDeleteWe believe that Adex growth will only pick up when there is more clarityon the global macro outlook, which in turn will reinforce confidence inbusinesses to invest in Adex.
Newspaper Adex dominates' The overallAdex market is worth ~RM8.3bn and newspaper medium still commands the lionshare, making up ~53%.
TV Adex is catching up' The nextbiggest Adex market is the FTA TV segment with 36% (~RM3bn) of the total Adexmarket. FTA TV Adex has been gradually increasing its share in the industryover the years because of growing affluence in the population whereby ~90% ofthe ~6.1m Malaysian household owns a TV.