Dec 6, 2018
- Despite losing some audience share in prime time, SCMA again retained its overall top position in prime time in November (35.3%), based on Nielsen data.
- Overall all-time share was dragged down by its non-flagship channel IVM
- SCMA’s share buyback program has just been approved by all shareholders who attended the EGM on Wednesday, December 5th
- The company will allocate up to IDR3tr for the buyback, and will have 18 months to complete the buyback action. We expect the share buyback to help improve the company's price-to-earnings (P/E) ratio.
- However, it is worth noting that the company’s cash position (IDR762bn as of 9M18) is well below the amount allocated for the buyback. SCMA’s future financial income could be affected, although the amount is not significant.
- Using the allocated fund of IDR3.0tr, buying back 1.46bn shares should be at an average price of IDR2,050. We reiterate our Hold rating, but increase our target price to IDR2,100/share, implying 2019F P/E of 20.5x.
(See full report: https://goo.gl/V6Sa4z)
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