Media's net profit improved

Media has just announced its results for 3Q2008 ended 30/9/2008. Its net profit increased by 9.4% to RM33.6 million over the preceding quarter while turnover was 7.9% higher at RM214 million. When compared to the previous corresponding quarter, net profit dropped by 25.3% despite an unchanged turnover. The later was attributable to higher advertising expenditure in 3Q2007, due mainly from the 50th Merdeka celebrations.



Media (closed at RM0.93 yesterday) is now trading at a PE of 6.6 times (based on last 4 quarters' EPS totaling 14 sen) or at a Price to Book of 1.5 times (cased on NTA of RM0.64 per share). At these multiples, Media is very attractive.

Media's share price has been dropped after making a high of RM3.20. The downtrend accelerated in May 2008. A break above the accelerated downtrend line resistance at RM1.10 could be the beginning of a bottoming process for this stock.


Chart 1: Media's weekly chart as at Nov 24, 2008 (source: Quickcharts)


Chart 2: Media's monthly chart as at Nov 24, 2008 (source: Quickcharts)

Being the largest media company in Malaysia, Media has very promising prospects. With its steady financial performance & attractive valuation, Media should be a good stock for long-term investing.