Analisa Saham Sektor Media
*DB Indo media analyst, Raja Abdalla, came up with a Bullish report on Media sector.*
Why we think it’s a good year for Advertising:
• *Media is an overlooked sector that provide attractive upside with undemanding valuation*. Both MNCN and SCMA are trading at 11.1x and 18.9x PE, respectively. This is below their 7 year avg PE
• We foresee *pick up in FMCG ads spending*. Expect more aggressive A&P on the back of launches or re-launches of products in 2018 (2017 is generally weak market for ads market i.e. Ads expense declined 2.0%YoY in 9M17 in which reported below 7 year avg ads expense to rev)
• More *investment in digital company* such E-commerce companies lead to stronger digital related ads as to increase brand awareness and intensifying competition amongst digital players i.e. Tokopedia/ shopee
• Historically, *boost from ads spending by govt and political organizations* as both regional elections and presidential elections are coming our way will also be incremental
• During 2013-2017, investment in media started to accelerate and NOW it is time to reap the benefit of those investment
Stock Pick
• MNCN discount to SCMA should get NARROWER (now 43% discount historically around 20%-25%); MNCN TP2180 (+45.3% upside)
• Reiterate our BUY rating on SCMA TP3100 (+23% upside)
Komentar
Posting Komentar