Indosiar contribution for Surya Citra Media Tbk (SCMA) total revenue increases to 44% from 34%. The rising contribution is positive for SCMA’s performance because Indosiar gross margin is by 71% higher than SCTV gross margin which is 52%.
Daewoo Securities Indonesia said Indosiar gross profit margin (GPM) grew 400 basis point to 71% on the second quarter 2016 compared to the previous GPM on the second quarter 2015 by 67%. This could be a catalyst for SCMA because the company will gain higher revenue in the future.
The audience share data in August 2016 that is issued by Nielsen shows Indosiar for recording the highest rising audience share by month on month in both prime time and non-prime time. Indosiar audience share in prime time rises by 4% to 12.4% while RCTI audience share in prime time only rises by 2.4% to 29.4%.
SCTV audience share in prime time fell by 1.4% to 11.8% per August 2016. “The decreasing audience share of SCTV will be offset by Indosiar’s benefit for showing Stand Up Comedy Academy 2,” said Daewoo Securities.
Daewoo recommended BUY for SCMA with a target price of IDR 3.870 since SCMA recorded EBITDA Margin and the highest ROE compare to its competitor. (*)
| The Ratio of SCMA and MNCN | ||
| Notes | SCMA | MNCN |
| Sales growth | 8.08% | 7.12% |
| Gross profit growth | 1,495.9B | 2,030.5B |
| Operating profit margin | 50.34% | 38.09% |
| Net profit margin | 0.36 | 0.28 |
| Market Cap | 40,356B | 27,196B |
| PER | 24.08x | 13.59x |
| ROA | 33.49% | 13.57% |
| ROE | 39.24% | 19.42% |
| Source: ipot | ||
Add Comment