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The Star
27-05-2025
- Business
- The Star
Star Media Group posts revenue of RM59.4mil
PETALING JAYA: Star Media Group Bhd (SMG) recorded revenue of RM59.4mil in the first quarter of financial year ended March 31, 2025 (1Q25), an increase of 12% compared to the same period a year ago. The company recorded pre-tax profit of RM0.7mil compared to a loss of RM0.2 mil in 2024, attributed to the better performance from both the radio broadcasting and property development and investment segments. Revenue for the radio broadcasting segment grew by 21% to RM8.8mil in 1Q25, resulting in significantly higher pre-tax profit of RM1.9mil compared to RM0.6mil in the same period last year. This growth was supported by increased revenue from commercial airtime, sponsorships, and digital platforms, benefiting from festive season demand, the media group said in a filing with Bursa Malaysia. As for its property development and investment, revenue saw a 237% growth to RM16.5mil as compared to RM4.9mil recorded in 1Q24. This strong performance, driven by higher progress billings from the Star Business Hub project and increased property leasing income, resulted in a significant rise in pre-tax profit to RM7.6mil, up from RM1.3mil recorded in the same period one year ago. Coming to the print, digital and events segment, revenue decreased 17% to RM35.4mil. This decline was primarily driven by lower advertising income amidst a more challenging economic climate influenced by potential US tariffs and ongoing geopolitical tensions. The segment recorded a pre-tax loss of RM3.5mil versus a RM1.6mil profit in the same period last year. Touching on prospects, SMG said economic disruptions stemming from geopolitical tensions and the escalating trade war will continue to present a challenging outlook for the media industry in 2025. 'These factors are expected to impede economic recovery and increase cost-of-living pressures, thus hindering the industry's ability to rebound. Despite these headwinds and continued disruptive trends, the group remains confident in its resilience and adaptability.' The group said the management remains optimistic that the property development and investment segment will continue to contribute positively to the group's overall performance in 2025. Leveraging on a strong financial foundation, SMG added that it will "actively pursue opportunities for revenue diversification and sustainable profitability growth".
Yahoo
08-04-2025
- Business
- Yahoo
A Look At The Intrinsic Value Of AYS Ventures Berhad (KLSE:AYS)
Using the Dividend Discount Model, AYS Ventures Berhad fair value estimate is RM0.20 AYS Ventures Berhad's RM0.23 share price indicates it is trading at similar levels as its fair value estimate Industry average of 927% suggests AYS Ventures Berhad's peers are currently trading at a higher premium to fair value Today we will run through one way of estimating the intrinsic value of AYS Ventures Berhad (KLSE:AYS) by projecting its future cash flows and then discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Don't get put off by the jargon, the math behind it is actually quite straightforward. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. We have to calculate the value of AYS Ventures Berhad slightly differently to other stocks because it is a trade distributors company. Instead of using free cash flows, which are hard to estimate and often not reported by analysts in this industry, dividends per share (DPS) payments are used. Unless a company pays out the majority of its FCF as a dividend, this method will typically underestimate the value of the stock. We use the Gordon Growth Model, which assumes dividend will grow into perpetuity at a rate that can be sustained. For a number of reasons a very conservative growth rate is used that cannot exceed that of a company's Gross Domestic Product (GDP). In this case we used the 5-year average of the 10-year government bond yield (3.6%). The expected dividend per share is then discounted to today's value at a cost of equity of 11%. Relative to the current share price of RM0.2, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. Value Per Share = Expected Dividend Per Share / (Discount Rate - Perpetual Growth Rate) = RM0.01 / (11% – 3.6%) = RM0.2 The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at AYS Ventures Berhad as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 11%, which is based on a levered beta of 1.263. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for AYS Ventures Berhad Strength Dividend is in the top 25% of dividend payers in the market. Weakness Interest payments on debt are not well covered. Current share price is above our estimate of fair value. Opportunity Has sufficient cash runway for more than 3 years based on current free cash flows. Lack of analyst coverage makes it difficult to determine AYS' earnings prospects. Threat Debt is not well covered by operating cash flow. Paying a dividend but company is unprofitable. Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For AYS Ventures Berhad, there are three additional factors you should further examine: Risks: For example, we've discovered 3 warning signs for AYS Ventures Berhad (2 are concerning!) that you should be aware of before investing here. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! Other Environmentally-Friendly Companies: Concerned about the environment and think consumers will buy eco-friendly products more and more? Browse through our interactive list of companies that are thinking about a greener future to discover some stocks you may not have thought of! PS. Simply Wall St updates its DCF calculation for every Malaysian stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
