KUALA LUMPUR (Nov 7): Hong Leong IB Research has maintaiend its Hold rating Media Prima Bhd with a lower target price of RM1.78 (from RM2.10) and said Media Prima’s 9MFY14 core PATAMI of RM105.0 million (9.5 sen per share) came in below house expectations, making up 56% of ours and 57% of streets’ full year estimates.

In a note Friday, the research house Media Prima declared a dividend of 3.00 sen per share, matching last year’s dividend during 3QFY13.

Reviewing Media Prima’s results, HLIB said the revenue plunged by 14% year-on-year (q-o-q: -3%) to RM379.6 million.

It said the drop in revenue were largely caused by all segments save the digital media segment which improved 9% y-o-y (q-o-q: +12%).

“3Q PATAMI fell further by 34% YoY to RM42.2m (3.8 sen/share).

“FY14, FY15 and FY16 earnings cut by 18%-15% to reflect lower adex growth and market uncertainties.

“Maintain Hold. Target price slashed by 17% to RM1.78 from RM2.10 based on an unchanged P/E multiple of 10.5x FY15 EPS,” it said.