Media Chinese 3Q profit down 23.7% to RM37.11m, expects a tough 4Q

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KUALA LUMPUR (Feb 26): Media Chinese International Ltd, which is dual-listed on Bursa Malaysia and the Hong Kong Exchange, saw its net profit for the third quarter ended Dec 31, 2014 (3QFY15) drop 23.7% to RM37.11 million or 2.2 sen per share, on lower publishing and printing revenue.

Revenue for the mentioned quarter had also fallen 10.3% to RM367.81 million, from RM410.25 million previously.

For the nine months to Dec 31, 2014 (9MFY15), the group that publishes titles such as Sin Chew Daily and Nanyang Siang Pau in Malaysia, saw its net profit dropped 26.4% to RM101.18 million or 6.01 sen per share; while revenue fell 7.3% to RM1.2 billion, from RM1.29 billion previously.

In a press statement, Media Chinese’s group chief executive officer Francis Tiong said the difficult business environment in the group’s major markets is expected to continue into the last quarter of the current financial year ending March 31, 2015.

“The Malaysian segment is expecting a challenging quarter ahead, as consumer sentiment is expected to remain weak, due to uncertainties underpinning the economy.

“Adding to this, the rising costs of living, impact of the upcoming goods and services tax (GST) implementation, and the depreciation of the Malaysian Ringgit against the US Dollar, would continue to weigh on consumer sentiments,” he added.

Media Chinese (fundamental: 2; valuation: 1.2) closed unchanged at 71 sen today, with a market capitalisation of RM1.2 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)