KUALA LUMPUR (Feb 27): CIMB IB Research has downgraded Media Chinese International Bhd (MCIL) to “Reduce” at 25 sen with a lower target price (TP) of 19 sen (from 22 sen) and said MICL’s 9MFY3/19 core net profit was below our expectations due to higher-than expected taxation, but broadly in line with consensus FY19F forecast.

In a note Feb 26, the research house said the travel segment may not help propel the group going forward given the lack of World Cup-related tours and the slowdown in Hong Kong’s economy.

“Downgrade MCIL to Reduce from Hold with a lower 19 sen TP. Key upside risks for the group are stronger dividends and higher digital adex contribution,” it said.