Tuesday, May 18, 2021

AmInvestment upgrades Astro to ‘buy’, raises fair value to RM1.83

Currently, Astro Malaysia Holdings Bhd has four attractive OTTs under its belt, namely Astro GO, iQIYI, HBO GO, and the recently announced Disney+ Hotstar. — Reuters pic
Currently, Astro Malaysia Holdings Bhd has four attractive OTTs under its belt, namely Astro GO, iQIYI, HBO GO, and the recently announced Disney+ Hotstar. — Reuters pic

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KUALA LUMPUR, May 18 ― AmInvestment Bank Bhd (AmInvestment) has upgraded Astro Malaysia Holdings Bhd's (Astro) to “buy” from “hold” with a higher fair value of RM1.83 per share following its attractive over-the-top (OTT) platform aggregator on top of its pay TV proposition.

Currently, the group has four attractive OTTs under its belt, namely Astro GO, iQIYI, HBO GO, and the recently announced Disney+ Hotstar.

“Astro is negotiating to add more OTTs this year and next year.  At the same time, it is planning to launch its own streaming platform known as Sooka in the second quarter of the financial year 2022 (2QFY22), offering vernacular content and premium live sports targeting millennials.

“We attribute a 3.0 per cent premium to share price to reflect a four-star environmental, social, and corporate governance (ESG) rating as appraised by us,” AmInvestment said in a note.

In FY21, Astro Go Shop recorded a profit before tax of RM17 million against a loss before tax of RM16 million in FY20 in tandem with a 26 per cent year-over-year (YoY) increase in revenue and as registered customers also rose 30 per cent YoY to reach 2.8 million.

As at 10.48am, Astro rose three sen to RM1.05 with 1,351,000 shares traded. ― Bernama




Source: Malay Mail

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