Affin Hwang Capital downgrades Astro, lowers target price to 90 sen

TheEdge Thu, Mar 26, 2020 09:03am - 4 years View Original


KUALA LUMPUR (March 26): Affin Hwang Capital Research has downgraded Astro Malaysia Holdings Bhd to “Hold” at 83 sen with a lower target price (TP) of 90 sen (from RM1.15) and said Astro posted a FY20 core net profit of RM717.2 million, coming in within house expectation, largely due to lower opex, in particular marketing and administrative expenses and costs normalising post the 2018 FIFA World Cup.

In a note today, the research house said it expects Astro’s FY21 earnings to be impacted by the slower economy due to Covid-19, but see a slight improvement in FY22 underpinned by sporting events (Tokyo Olympics and Euro League Cup) being postponed to 2021.

“Following our earnings revisions, we lower our DCF-derived TP to 90 sen from RM1.15.

“We downgrade Astro to Hold from Buy given the potential upside to our new TP is now only 8.4%,” it said.

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