Analisa Saham MNCN | 6 Juni 2018

FR CGS-CIMB (YU) : Media Nusantara Citra
Weak 1Q18 but expect improvements in 2Q18

MNCN IJ / MNCN.JK | ADD - Maintained | Rp1,170.00 tp:Rp1,650.00▼
Mkt.Cap:US$1,204.00m | Avg.Daily Vol:US$1.36m | Free Float:35.80%
Media - Integrated
Author(s):Kevie ADITYA +62 (21) 3006 1738,

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■   The 17.3% yoy core earnings decline to Rp310bn in 1Q18 was disappointing. This was due to 1) flat yoy revenue, and 2) a higher uncharted tax rate.
■   With audience share improvement expected in May 2018 onwards, revenue growth should get a lift to some 2.3% yoy in FY18F.
■   Assuming P&B costs continue to normalise, GPM should expand by c.0.8% pts to 62.9%, leading to 3.1-7.3% FY18-19F core EPS growth.
■   Weak growth aside, valuations at 10.4x 12M forward P/E (almost 2 s.d. below 3-year mean) have largely priced in the weakness but ignore balance sheet improvements.
Maintain Add with a lower TP based on 13.0x 2019F P/E (1 s.d. below 3-year mean).