RHBInvest Research

Top Story: Star
Visit Note

• Still keeping a lookout for media assets
• Recently, Star acquired Capital FM for a cash consideration of RM15m. In total, Star now owns four radio stations namely 988, Red FM, Suria FM and Capital FM. While this division remains in the red, its losses have been narrowing in recent years and management expects the division to break-even in a few years time.
• Lowered our fair value to RM3.71 (from RM4.23). As the stock’s potential return is roughly in line with our expected return from the market, we downgrade the stock to Market Perform from Outperform previously.