KUALA LUMPUR, March 1 -- Astro Malaysia Holdings would be a potential beneficiary to the fifth-generation (5G) open access as it can be a provider of mobile, broadband and content services, Citi Research said.
The research house said the government's plan to build a singular 5G network infrastructure could potentially lead to Astro’s entry as a mobile virtual network operator (MVNO).
"We do see potential for it to reinforce its standing amid the new market order with 5G singular network.
"Astro with 76 per cent market share in the television space is a known brand with extensive customer touchpoints.
"Its initial foray into fixed broadband as a reseller did find decent traction which was supported by bundling discounts," it said in a note on Monday.
Therefore, Citi Research has maintained its “buy” call for Astro with a target price (TP) of RM1.14.
The research house expects Astro to deliver a firm fourth-quarter financial year 2021 (4QFY21) results despite movement restrictions in the country.
"We expect Advertising Expenditure to remain resilient while the resumption of sports content and better consumer sentiments to allow for average revenue per user stabilisation.
"We raise our estimation by three to five per cent and TP to RM1.14 ahead of the results (4QFY21) on March 25," it said.
As at 11.20am, Astro's share price stood at RM0.93 per share.
-- BERNAMA
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