FR CGS-CIMB (YU) : Surya Citra Media
A better outlook
SCMA IJ / SCMA.JK | ADD - Upgrade | Rp2,330.00 tp:Rp2,700.00▲
Mkt.Cap:US$2,434.00m | Avg.Daily Vol:US$1.41m | Free Float:19.40%
Media - Integrated
Author(s):Kevie ADITYA +62 (21) 3006 1738,
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■ SCMA recorded an 18.2% yoy core earnings growth in 1Q18, on the back of a strong 15.0% yoy revenue growth, following strengthening audience share in 4Q17-1Q18.
■ Up to Apr 2018, its primary TV station, SCTV, has continued to dominate prime time slots. Nevertheless, heightening competition from RCTI and ANTV remains a risk.
■ Despite expecting a normalisation of revenue growth in 2Q18F, we still expect a strong 12.2% FY18F revenue growth and 18.8% FY18F core earnings growth.
■ Our FY18-20F core earnings are increased slightly by 0.8-1.1% despite factoring in Rp49bn annualamortisation expenses from the Sinemart acquisition in 4Q.
■ Upgrade to Add on better outlook. Our higher TPis pegged to 23.5x 2019 P/E.
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