February 29, 2012

Media Chinese International: Maintain Sell - Good quarter but slowdown evident

Stock Name: MEDIAC
Company Name: MEDIA CHINESE INTERNATIONAL LT
Research House: MAYBANKPrice Call: SELLTarget Price: 0.98



Raise TP to RM0.98 (+9% YoY) but maintain Sell. MCIL's earnings exceeded expectations for another quarter. We revise our FY13-15 earnings estimates upwards by 8%-9% p.a. on slightly less pessimistic assumptions. That said, we are mindful that its YoY adex growth has slowed markedly, from low double digits in percentage terms in 2QFY12 to mid-single digits in 3QFY12. In addition, we understand that its Jan 2012 gross adex contracted by 3% YoY.


Maybank Research 29 Feb 2012

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