OCBC Report

KEY IDEA Astro: FY14 results mostly in line Astro Malaysia Holdings Berhad (Astro) saw FY14 revenue rising 11% to MYR4790.7m, or about 1% below our forecast, while net profit climbed 34% to MYR448.0m, or just 3% shy of our estimate. Astro declared an interim dividend of 2 sen/share and a final dividend of 1 sen, bringing the full-year payout to 9 sen. Going forward, Astro remains largely upbeat about its outlook, citing strong execution of its strategy to growing total revenue; guides for double-digit revenue growth in FY15. Although Astro may see higher costs relating to the 2014 World Cup broadcast, management remains confident that it should be able to contain these costs (also mitigated by lower B.yond swap-out costs). As such, we are keeping our FY15 estimates largely unchanged. Our DCF-based fair value though increases from S$3.13 to S$3.50. Maintain BUY. (Carey Wong)

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