国际股市

【319股市】 Astro dips 2% on softer 1Q earnings

大象配资官方网站 – 319th[.]com

KUALA LUMPUR (June 22): Shares in Astro Malaysia Holdings Bhd fell 2.13% in the mid-morning on Wednesday (June 22) in line with the broader market after its net profit for the first quarter ended April 30, 2022 fell 29.19% to RM100.02 million, from RM141.25 million a year earlier, due to factors that included higher net financing costs amid unfavourable unrealised foreign exchange loss.

At 10am, Astro had dipped two sen to 92 sen, valuing it at RM4.79 billion.

Astro’s revenue dropped 9.36% to RM962.09 million from RM1.06 billion, following a decrease in subscription revenue and merchandise sales.

The pay TV behemoth declared its first interim dividend of 1.25 sen per share to be paid on July 20.

Meanwhile, Hong Leong Investment Bank Research maintained its “buy” rating of Astro at 94 sen with a lower target price (TP) of RM1.34 (from RM1.40) and said Astro’s first-quarter core earnings of RM124.9 million (-3.7% quarter-on-quarter; -18.2% year-on-year) were largely within house (22%) and consensus (24%) expectations.

In a note on Wednesday, the research house said despite a soft start to the year, it expects a continued recovery in adex spending as economic activities recover as well as better commercial subscriptions following the opening of international borders.

“Moreover, with the recent launch of addressable advertising on linear TV alongside VOD and Astro’s set-top boxes, we believe these will further contribute to earnings recovery in the subsequent quarters.

“We maintain ‘buy’ with a lower discounted cash flow-based TP of RM1.34 (weighted average cost of capital: 8.6%; TG: 0%) from RM1.40. Additionally, Astro yields an attractive 8%,” it said.

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Astro 1Q net profit falls 29.19% y-o-y to RM100 mil on higher net financing costs, declares 1.25 sen dividend