Media Prima rises after reporting 2Q, 1H profit

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KUALA LUMPUR (Sept 3): Media Prima Bhd shares rose as much as five sen or 12% to 46 sen so far today after the group said on Thursday it posted a net profit of RM31.95 million in the second quarter ended June 30, 2018 (2QFY18) from a net loss of RM132.91 million a year earlier.

For 1HFY18, Media Prima said net profit stood at RM10.13 million against a net loss of RM171.37 million a year earlier.

Today, TA Securities Holdings Bhd analyst Wilson Loo wrote in a note : "Media Prima’s 1HFY18 core net loss of RM35.2mn came within ours but below consensus estimates at 52.6% and 74.9% respectively. This excludes proceeds of RM45.3mn from the sale of Malaysian Newsprint Industries, a former associate of its print business, in 2QFY18 (May 2018).

"Our TP (target price) for Media Prima is raised slightly to RM0.39/share (RM0.38/share previously) based on DDM (dividend discount model) valuation with cost of equity at 8.9% and long-term growth rate of 1.0%. Key risks include sustained challenges in traditional adex and prolonged gestation for transformation initiatives. Reiterate sell."

At 10:21am today, Media Prima shares changed hands at 43.5 sen with 822,600 shares traded.