Hot Stock Astro extends gains after all-time high

Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Thursday, 09 May 2013 15:53
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KUALA LUMPUR (May 9): Astro Malaysia Holdings Bhd continued its
climb today following a new all-time high close yesterday.
Analysts said market sentiment is still riding high after the elections and
investors are anticipating the pay TV entity to see bigger average
revenue per user (ARPU) from its B.yond IPTV service under a
collaboration with sister company Maxis Bhd.
At 3:24pm, Astro, a FBM KLCI constituent, was traded four sen higher
at RM3.14 with 24.24 million shares changing hands. It had hit a high of
RM3.20 and low of RM3.07.
Yesterday, the stock reached a new all-time high of RM3.10 after
jumping six sen on heavy trade of 41.51 million.
A Hong Leong Investment Bank (HLIB) analyst told
theedgemalaysia.com that Astro shares have rebounded this week due
to the positive sentiment brought forth by Barisan Nasional’s return to
power.
“However, I am not sure if it (Astro share gains) is sustainable,” the
analyst said.
Another analyst said the stock could see some consolidation by the end
of this month given that Astro shares are the most expensive among
Malaysian media companies.
“I don’t know if it can go up any further.” the analyst said.
However, the HLIB analyst said investors are anticipating that Astro and Maxis’ partnership to offer the B.yond IPTV service
will boost ARPU for the former.
“Astro is getting a bulk of the revenue from the service where it will get the full revenue from the content and 75% from the
bandwidth revenue.
"People expect this (service) will drive up Astro’s ARPU growth,” said the analyst.
As at its last financial year ended January 31, 2013 Astro’s ARPU rose 5% to RM93 from RM89 a year ago.
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