not vested
Trading Buy: MEDIA - 4502
Negatives priced in and deep discount to asset value
(Last price: RM0.150, Potential upside +46.7%)
Company Profile
Media Prima (MEDIA) primarily provides media broadcasting, newspaper publication, outdoor advertising and content production.
Trading Catalyst
MEDIA’s risk-reward profile is increasingly attractive after sliding 71% from a 52-week high of RM0.52 to RM0.15.
Valuations are attractive as the stock is trading at deep discounts of 72% to BVPS of RM0.54 (-33% to peers) and 34% to netcash per share (NCPS) of RM0.227 (-34% to peers), respectively.
Moreover, current share price is considerably lower against major shareholders i.e. Syed Mokhtar (bought 31.9% stake on 8 Oct 2019) and Morgan Stanley (12.8% stake accumulated since Apr 2017) entry costs.
MEDIA is expected to challenge higher resistances at RM0.17-0.22 in the mid to long term, following a bullish downtrend line breakout on 17 Apr.
Technical View
Resistance: RM0.170 / RM0.200 / RM0.220
Support: RM0.135 / RM0.120
Cut loss: RM0.115
Key Financial Stats
Trading at 72% lower than its BVPS (RM0.54) and 34% discount to its NCPS (RM0.227).
Source: HLIB