Media Prima Keeps 'Happy'

 Media Prima Bhd shares surged as much as 14% or 2.5 cents to 20.5 cents in the early trading session today versus 18 cents when the session closed overnight after netting a net gain of RM12.43 million in the third quarter ending Sept 30 2020 (3QFY20).

By 10:05 a.m., Media Prima's shares were up to 19.5 cents, still up 1.5 cents or 8.33%. The company's counterpart saw 27.1 million shares swap hands, making them among the most actively traded stocks this morning.

AmInvestment Bank Research in today's note is offering suggestions to "buy" rather than "hold" after believing that Media Prima will receive a favorable impression rather than the slow transformation of the Odyssey that has been carried out since 2016 to develop revenue from a trade and digital perspective.

The firm had also raised Media Prima's target price to 25 cents to 22 cents prior to this the proposed price to the company's book value increased by 0.5 times a double after taking an estimated book value per share of 50 cents at 3QFY20.

Media Prima recorded results after netting a net profit of RM12.43 million in 3QFY20 compared to a net loss of RM24.16 million in the same period before.

According to Bernama, the company's revenue has increased to RM268.76 million from the RM265.54 million recorded in 3QFY19, he said in an announcement to Bursa Malaysia last night.

Media Prima said that the accumulated income recorded a marginal growth following a gradual reconnection of economic activity in Malaysia following the relaxation of the Movement Control Order (PKP).

The pool recorded an after-excise profit of RM11.78 million in 3QFY20 versus an after-excise loss of RM25.56 million in 3QFY19 due to better results including a lower operating expenditure of RM224.9 million compared to the RM239.9 million recorded during 3QFY19.

"Profits after group excise also include exemptions on tax payments and remuneration on license fees totaling RM9.7 million," he said while adding to the digital media segment and buying at home with higher viewers contributing to increased revenue.

In terms of prospects, Media Prima is eternally committed to executing its strategy of offering integrated advertising solutions as it has seen a growing demand for digital advertising as well as advertiser content.

"The solid performance of our trading commerce has provided an opportunity to further enhance the home buying experience through our special programs and enhanced e-commerce and mobile trading platforms," ​​he said.