KUALA LUMPUR (July 3): Hong Leong IB Research has maintained its “Hold” rating on Media Prima Bhd (MPR) at RM1.45 with a lower target price of RM1.50 and said since the beginning of the year, adex has been rather sluggish.

In a note today, the research house said it expects 2Q to be relatively weak.

The research house said MPR would focus on developing a more universal content for the local and overseas market.

HLIB said that with the change in media landscape, it expects further erosion in its print circulation.

“Year-to-date, stock has underperformed the market, depreciating 13.7%, while FBMKLCI dipped 3.9%.

“Cut earnings by 10%-14% due to uncertain market outlook, cautious adex spending coupled with the impact of GST.

“Maintain Hold, with target price lowered to RM1.50 based on updated 4-year average P/E multiple of 11x FY16 EPS,”it said.