Hong Leong Investment Bank maintained a “Buy” recommendation of Astro Holdings Bhd with an unchanged DCF-based trading price of RM1.34.
It said that with a diversified revenue stream as well as an improved and more efficient advertising solution for clients, Astro is increasing its competitive advantage
It said that it likes Astro because it foresees further contributions coming from further uptake of its new bundle packages (content and broadband fibre) as it provides more value and cost savings for customers.
In addition, it said that it has a better value proposition of Astro’s content as it aims to become the #1 streaming aggregator in Malaysia with more streaming service partnerships in the pipeline.
HLIB said that further recovery in commercial subscriptions (which provides a better margin) as international travel resumes for Malaysia. In addition, Astro currently provides an attractive dividend yield of 8.4%.
