Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 20): Hong Leong IB Research has maintained its “Neutral” rating on the media sector and said it expects the sector to remain soft.

In a note Tuesday, the research house said consumer sentiment is expected to remain subdued while business communities to experience lower demands and sales performance.

It said the Good and Services Tax (GST) implementation will further erode purchasing power, affecting adex spending.

“More adex ringgit will flow to the TV medium. Outlook for newsprint will continue to be challenging.

“Ringgit has depreciated notably against US$. However, as demand is lower caused by strong migration towards the digital platform, we estimate newsprint prices to be on a downtrend. Thus, we believe it will neutralise the impact of weakening RM.

“Maintain Neutral on the sector with Astro Malaysia Holdings Bhd (Buy, TP: RM3.47), Star Publications (M) Bhd (Buy; TP: RM2.73), Media Prima Bhd (Hold; TP: RM1.77), and Media Chinese International Ltd (Hold;TP: 64 sen).

 

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