Amidst the downtrend of Bursa Malaysia, Astro Malaysia Holdings Berhad is performing in a growing direction. Its current share price on 2nd January was at 1.330 share price with an increment of 0.030 (2.31%). Whereas Bursa Malaysia market is running down by 21.50 (-1.27%) at 1669.08.
This makes it very important to think about investing in Astro Malaysia in 2019 if an investor in Malaysia is thinking about investing in Bursa Malaysia.
ASTRO MALAYSIA (KLSE: ASTRO)
About The Company:
Astro Malaysia Holdings Berhad is a Malaysian media and entertainment holding company that began as a paid digital satellite radio and television service, Astro. The company is owned by Astro Holdings Sendirian Berhad which also owns Astro Overseas Limited.
Its 11 radio brands include the highest rated stations across Malaysia’s four key languages, engaging with 16.5 million weekly audiences on-air and online.
Its unit, MEASAT Broadcast Network Systems Sdn Bhd (MBSN), has secured RM 300.0 million loans from AmBank (M) Bhd. The loan will be used to finance MBSN’s production, purchase and licensing of content/programmes/channels, to purchase set-top boxes (including the settlement of vendor financing), for capital expenditure including asset acquisition for broadcast and transmission and acquisition of software and platforms, and/or for lending to any member of the Astro Group (news source Edge market).
Performance In 2018:
Let’s consider the Fundamental and Technical overview of Astro Malaysia Holdings Bhd to better understand its performance in 2018.
1. In FY-18 company reported sales of MYR 5531 (million) with the profit of MYR 1140 (million).
2. Net income for FY-18 stood at MYR 771 (million).
3. Its net margin and operating margin comes at 13.93% and 20.61%
4. Book value per share comes at MYR 12.60.
5. The company has a good dividend payout percentage ratio above 80% and dividend at 0.10 MYR.
Below is the dividend history of Astro Malaysia in between FY13-FY19. As you can see that dividend continues to increase for the last six years. FY19 is yet to reach a new height. Considering the positive sentiments of the market regarding Astro Malaysia.
5 Years Revenue & Profit Trend:
|Market Capitalization (M)||6779|
|No. of Shares(M)||5214|
|Earning Per Share (MYR)||0.14779|
|1 Year price Range||1.050 – 2.790|
1. New Initiative Company’s focus shifting to digital marketing
2. Sharing of printing facilities will reduce operating margin
3. Possibility merger & acquisition opportunities
4. Consumer sentiments and consumer spending will increase as per forecast by (Malaysian Institute of Economic Research) help to gain advertisement and subscription.
On daily charts, stocks bottom out around 1.10 after trading in a range from 1.10 to 1.25. Exponential moving averages like 20 days and 50 days now shift higher and trading sideways.
Price trading above moving averages pins out prices now moves higher. Momentum indicator like MACD also developed positive or bullish divergence and pointing upwards.
Positive histogram and the signal line above zero will signal entry opportunity on dips.
Price wise and time wise consolidation is good for the stock as it is the sign of major upcoming breakout in stock.
Price action wise each day price trading in sideways after giving breakout from 1.25 levels to reach at 1.41 levels and looks stock in retracement.
This retracement in price near 1.28-1.30 gives buying opportunity with strict support comes at 1.22 with price rise target up to 1.40 and 1.50.
Stocks major support and resistance level were as below:
Multi Management Future Solutions Key Takeaways
It will be prudent to say that if you are a potential investor in Malaysia you must think about investing in Astro Malaysia. Media and Entertainment industry is very competitive and growing at an unprecedented rate. In this market, Astro Malaysia is making its footprint with exceptional growth. With all the date provided above, you can use your judgment to whether you should invest in it or not.
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