Star Media, once a shining star in the newspaper industry, now faces the inevitable fate of a sunset business. The dawn of digital media has cast a long shadow over traditional print newspapers, and The Star is no exception. But like a star in its final moments, there will be one last burst of light before it fades into obscurity — a phenomenon known as a supernova. The recent move by Star Media to hike cover prices for its physical newspaper by 50% from RM2 to RM3, could potentially lead to a significant increase in earnings. While more recent data is not available, for 2H2018, The Star had an average of 151,623 paid printed copies in circulation per publication day (audited and verified by the Audit Bureau of Circulations). Assuming that The Star’s print circulation has now decreased by half to 75k per day, this would still equate to about 27 mil copies per year. A RM1 increase in cover price could potentially result in a boost of RM27m flowing directly to its bottom line. Assuming a...
The most undervalued Malaysian bank could be unlocking more than RM1bil from its crown jewel Affin Bank (5185) is looking to list its 63%-owned Affin Hwang Asset Management Bhd (AHAM) , according to recent news . Affin Bank is said to be currently working with advisers on the listing. This unlocking of value could be a near-term catalyst for Affin Bank (the most undervalued Malaysian bank, trading at about 0.3x P/BV ). The value to be unlocked will be the current value of AHAM minus the price that Affin Bank paid for it. Affin Bank purchased AHAM for RM282mil in 2014 What could be the current value of AHAM? Asset management companies are generally valued at market cap to asset under management (AUM), better known as price-to-AUM, P/AUM . So, one way to gauge the value of AHAM is to look at its AUM, which is currently about RM67bil (as at 31 Oct 2020). Let’s gauge… If AHAM is valued at 4...
Pentamaster, the undiscovered Covid-19 thematic play Covid-19 thematic stocks have seen a fantastic rally lately. Gloves, face masks, PPE, face shields, medical beds, ventilators, etc.. you name it. One stock not known to many that has jumped on this ship is Pentamaster. It recently started making Ventilators like K-One Technology (K1). Why do many not know about this? That’s because Penta has not made an announcement yet. However, those who have stumbled upon Malaysian Investment Development Authority (MIDA) recently published Apr 2020 newsletter ( https://www.mida.gov.my/home/e-newsletter/posts/ ) might have noticed this: This is a very interesting development which could be a catalyst to Penta’s share price. Like Notion VTec, Penta might also get a boost from upcoming Bonus Issue. Penta share price has been consolidating around RM4.00 level and looks ready for a breakout. For those who are less familiar, Penta is no ordinary stock. In fact, it is a champ...
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