Hong Leong Investment Bank has made a “Buy” recommendation for Media Prima with an unchanged trading price of RM0.61 pegged to an unchanged P/B multiple of 1x based on FY22 BVPS.
The investment house said that it believes that Media Prima’s future earnings growth will be supported by stronger adex sales through its integrated advertising solution OMNIA and growing sales in content, home shopping and digital segments
Media Prima recorded 4 consecutive quarters of core profits after it returned to the black in 3Q20.
Its successful turnaround can be attributed to major business restructuring including manpower rationalization, integration of different advertising teams under Omnia and monetizing its spare printing capacity; and the growth of non-advertising revenues including home shopping and content sales.
Its diverse revenue base allows the company to weather through business cycles that affects any segment.