Kenanga Research has maintained an “outperform” recommendation for Astro Malaysia Holdings Bhd with a lower TP of RM1.07 (previously RM1.22) It said that its TP valuation is based on an unchanged FY23E PER of 10.2x (0.5SD above the stock’s 3-year mean).
The research house said that it believes the easing of movement restrictions and SOPs coupled with the reopening of the economy will improve the disposable income of consumers, thus, allowing them to better respond to the expanding OTT services provided by ASTRO as well as generating more advertisement activities on the group’s platforms.
Kenanga says that Astro continues to expand its services by collaborating with Synamedia to provide Addressable Advertising solutions to businesses to help them reach specific audiences with targeted advertisements.
“Currently, the service is available on Astro Go and Video on Demand content and will eventually be launched for their linear TV audiences. We see this as a positive move taken by the group to further strengthen the group’s TV adex,” it said.
