OSK Research expects media advertisement expenditure (ADEX) growth to close 2011 at double the in-house gross domestic product forecast of 5.2 per cent.
OSK Research in a research note today said the expectation is based on the strength in domestic consumption that can still be seen.
The research house said according to the AC Nielsen Media Research, the first nine months of 2011 saw ADEX grow by a robust 10.4 per cent year-on-year (y-o-y) shored up by resilient domestic consumer spending despite concerns of slowing recovery and weakening consumer confidence on the global economic front.
It said that advertisement spending on the three core divisions -- newspapers, television and radio channels -- made up a total of 94 per cent of the combined ADEX, rising by 10.7 per cent y-o-y to RM5.75 billion.
Meanwhile, the Internet segment remained the fastest growing, chalking up 34.4 per cent y-o-y growth but accounting for an insignificant 0.7 per cent share of total ADEX.
OSK Research maintains an "overweight" call on the sector as it believes that thematic factors such as an impending polls and the Euro 2012 football tournament would be the key catalysts in 2012.
OSK Research said that the top picks -- Media Chinese, Media Prima and Catcha Media -- are all pegged with a "buy" call and fair value at RM3.17, RM3.09 and RM1.21 respectively.
Meanwhile the research firm has rated a "neutral" call on Star with a fair value of RM3.34. -- Bernama
OSK Research in a research note today said the expectation is based on the strength in domestic consumption that can still be seen.
The research house said according to the AC Nielsen Media Research, the first nine months of 2011 saw ADEX grow by a robust 10.4 per cent year-on-year (y-o-y) shored up by resilient domestic consumer spending despite concerns of slowing recovery and weakening consumer confidence on the global economic front.
It said that advertisement spending on the three core divisions -- newspapers, television and radio channels -- made up a total of 94 per cent of the combined ADEX, rising by 10.7 per cent y-o-y to RM5.75 billion.
Meanwhile, the Internet segment remained the fastest growing, chalking up 34.4 per cent y-o-y growth but accounting for an insignificant 0.7 per cent share of total ADEX.
OSK Research maintains an "overweight" call on the sector as it believes that thematic factors such as an impending polls and the Euro 2012 football tournament would be the key catalysts in 2012.
OSK Research said that the top picks -- Media Chinese, Media Prima and Catcha Media -- are all pegged with a "buy" call and fair value at RM3.17, RM3.09 and RM1.21 respectively.
Meanwhile the research firm has rated a "neutral" call on Star with a fair value of RM3.34. -- Bernama
