Friday 29 Mar 2024
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KUALA LUMPUR (Sept 13): Affin Hwang Capital Research has upgraded Astro Malaysia Holdings Bhd to “Buy” at RM1.34 with a higher target price (TP) of RM1.62 (from RM1.50) and said Astro posted a strong 6MFY20 core net profit of RM394.7 million (+48% y-o-y), largely due to content costs normalising post the 2018 FIFA World Cup as well as an overall reduction in marketing and administrative costs.

In a note today, the research house said the result came in above house and street expectations, accounting for 64% and 63% of respective FY20 forecasts.

“Given the stronger-than-expected results, we revise up our FY20-22E core EPS forecasts by 11-13%.

“Meanwhile, its TV subscription revenue decline appears to have been arrested and may sustain dividend yields at an attractive circa 6%.

“Upgrade Astro to Buy (from Hold) based on a higher DCF-derived TP of RM1.62,” it said.

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