MARKET PERFORM ↔
Target Price: RM3.22 ↔
We attended STAR’s post 2Q12 result briefing yesterday, which was led by the group’s CEO. The key highlights of the meeting focused on 1) the dividend payout ratio; 2) its e-bundled product & circulation number; 3) the upcoming revamp exercises on its jobs and property sections; and 4) an update on existing businesses. Despite management continuing to paint a bullish picture on its prospect, we are maintaining our cautious stands on STAR judging from the sluggish adex performance and unexcited outlook in Cityneon. The group is targeting to maintain its dividend payout ratio at 70s% for FY12, similar to the payout declared for the prior financial year. Post-result briefing, there is no change in our FY12- FY14 earnings forecasts. We are maintaining our STAR target price at RM3.22 based on an unchanged targeted FY13 PER of 13.1x (- 1SD). Our MARKET PERFORM rating is retained as well.
Source: Kenaga
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