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Research by HLIB
SELL – TP RM0.23

" Still a bumpy road ahead”

Astro is currently ironing out its strategy to rationalise their products offering. At this juncture, Astro have 15+ packages offering and the group observed that they are losing the opportunity for customer’s acquisition as most are left confused with options available. Moving forward, the group is looking to rejig its package offering to three different options with the lowest tier package to come on par with the most OTT offerings at RM40-50. While the simplification could increase customer’s traction, we view that this would reduce the group’s ARPU even further. Despite its expertise in local content production, we view that the outlook may still be hampered by the major hurdle of softening adex and weakening subscription. Maintain SELL with a DCF-based TP of RM0.23 (WACC: 6.7%, TG: - 2%).  

Analyst:
Syifaa’ Mahsuri Ismail
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$KLSE-ASTRO 
Research by HLIB
SELL – TP RM0.23

" Still a bumpy road ahead”

Astro is currently ironing out its strategy to rationalise their products offering. At this juncture, Astro have 15+ packages offering and the group observed that they are losing the opportunity for customer’s acquisition as most are left confused with options available. Moving forward, the group is looking to rejig its package offering to three different options with the lowest tier package to come on par with the most OTT offerings at RM40-50. While the simplification could increase customer’s traction, we view that this would reduce the group’s ARPU even further. Despite its expertise in local content production, we view that the outlook may still be hampered by the major hurdle of softening adex and weakening subscription. Maintain SELL with a DCF-based TP of RM0.23 (WACC: 6.7%, TG: - 2%).  

Analyst:
Syifaa’ Mahsuri Ismail
syifaa@hlib.hongleong.com.my

$ASTRO / 6399 (ASTRO MALAYSIA HOLDINGS BERHAD)