KUALA LUMPUR (Aug 29): CGS-CIMB Research has maintained its “Add” rating on Star Media Group Bhd at 58 sen with a lower target price (TP) of 87 sen (from 95 sen) and said Star’s 1H19 core net profit hit only 36% of consensus and house FY19F forecasts.

In a note today, the research house said as the economy decelerates, advertisers cut back on spending.

“We cut our FY19-21F EPS by 22-63% to impute lower advertising expenditure and higher taxation charges.

“Our RNAV-based TP fell from 95 sen to 87 sen, but we maintain Add. The upside to its future asset monetisation plans is too immense to be ignored,” it said.