Headline Malaysia Holdings Bhd MediaTitle The Edge Date 11 May 2020 Language English Circulation 25,910 Readership 77,730 Section Corporate Page No 21 ArticleSize 156 cm² Journalist N/A PR Value RM 8,120

Astro Malaysia Holdings Bhd Target price 90 sen MARKET PERFORM

ABSOLUTELY STOCKS

1.25

MYR 0.97

0.75 r

0.5 May 6, 2019 May 5, 2020

KENANGA RESEARCH (MAY 4): While Astro continues to forge partnerships, we believe the anticipated weakness in economic activity could weigh on its customer acqui- sition efforts. A silver lining now from the postponement of mid-year major sporting events is lower content costs but this would eventually be felt in CY21/FY22. We downgrade our call to "market perform" from "out- perform" as it has surpassed our target price of 90 sen (nine times FY22 PER). Still, dividend yields of 8%-10% might attract some investors. Arising from the ongoing Covid-19 pandemic, our econ- omists anticipate our national gross domestic product (GDP) to decrease by 1.9% in CY20. We believe this might hinder customer acquisition and retention strategies by Astro as customers may reconsider their subscription commitments. To recap, since last year, Astro has partnered Maxis Bhd to provide broadband-bundled packages with a sim- ilar arrangement recently signed with Alio, a subsidiary of Bhd. Additionally, Astro has collabo- rated with iQIYI to launch its streaming app to deliver over-the-top content from China. VALUATOR

Company(Brand) Mention Tone ROI Berhad (Astro Malaysia Holdings Berhad) 2 0 RM 0 - MREM (Bernama - MREM 6) 1 0 RM 0 CIMB Investment Bank Berhad (CIMB - Economy News) 2 0 RM 0 Covid- 19 - Malaysia (Covid- 19 - Malaysia) 1 0 RM 0 Maxis Berhad (Maxis Berhad) 2 0 RM 0 Securities Commission Malaysia (Malaysia Capital Market) 2 0 RM 0 Star Reacher - Coronavirus (Star Reacher - Coronavirus) 1 0 RM 0 Tenaga Nasional Berhad (TNB) (Tenaga Nasional ) 1 0 RM 0