Media (Neutral NEW) - 2012 to be a quiet year

Stock Name: MEDIA
Company Name: MEDIA PRIMA BHD

Research House: HLG

Price Call: SELL

Target Price: 2.34

Stock Name: STAR
Company Name: STAR PUBLICATIONS (M) BHD

Research House: HLG

Price Call: HOLD

Target Price: 3.27

Stock Name: MEDIAC
Company Name: MEDIA CHINESE INTERNATIONAL LT

Research House: HLG

Price Call: HOLD

Target Price: 1.26

Media (Neutral NEW)

2012 to be a quiet year

• Adex growth to moderate' Jan-12 Adexfell by -10.2% YoY, continuing the downwards trend in Adex growth.
• We believe that Adex growth will only pick up when there is more clarityon the global macro outlook, which in turn will reinforce confidence inbusinesses to invest in Adex.
• Newspaper Adex dominates' The overallAdex market is worth ~RM8.3bn and newspaper medium still commands the lionshare, making up ~53%.
• TV Adex is catching up' The nextbiggest Adex market is the FTA TV segment with 36% (~RM3bn) of the total Adexmarket. FTA TV Adex has been gradually increasing its share in the industryover the years because of growing affluence in the population whereby ~90% ofthe ~6.1m Malaysian household owns a TV.
• With slowing Adex growth and lack of confidence within the businesscommunity to commit on additional Adex spending, we are NEUTRAL on the sector.
• Hence, we initiate coverage on:
• Media Prima with aSELL at TP: RM2.34;
• Star with a HOLD atTP of RM3.27; and
• MCIL with a HOLD atTP of RM1.26

Source: HLIB Research 6 March 2012