KUALA LUMPUR (Jan 27): CIMB Research has maintained “Neutral” on the media sector and said 2014 was a challenging year for the sector, given weak consumer spending following the subsidy rationalisation exercise and tragic incidents that further dampened consumer sentiment.

In a note Jan 26, the research house said it expects a gradual recovery in 2015, especially in 2H after anxiety over GST implementation subsides and better operating efficiency in the sector.

“We stay Neutral on the media sector due to the challenging operating environment caused by weak consumer sentiment on the back of uncertainty in the domestic economy.

“However, we still expect the sector to post a three-year EPS CAGR of 7.3%, mainly driven by Astro Malaysia Holdings Bhd.

“Astro is our sector top pick due to its resilient earnings growth, dominant position and less reliance on adex market,” it said.