Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 20): Media Chinese International Ltd (MCIL), the country’s largest Chinese-language media group, has denied rumours it will undergo a drastic consolidation plan involving its four daily newspaper titles in Malaysia namely Sin Chew Daily, China Press, Nanyang Siang Pau and Guang Ming Daily.

“The management would like to reiterate that in an attempt to improve and innovate further, the basic structure and operational set-up of the [MCIL’s] Malaysian businesses remain unchanged,” MCIL said in a statement issued to theedgemarkets.com today evening.

In its statement, MCIL (fundamental: 2, valuation: 1.2) said that Sin Chew Daily will continue to be the largest circulating Chinese daily newspaper in Malaysia.

Meanwhile, its Nanyang Siang Pau will continue to be published as a premier daily, with a focus on business and economic news targeting the Chinese business community; while China Press will continue to be the second most popular Chinese daily newspaper, with large evening followers.

The group further said Guang Ming Daily will continue to serve its readers in the whole of Peninsular Malaysia, besides maintaining its pole position in the northern region.

MCIL is 52.48%-owned by Sarawak timber and media tycoon Tan Sri Tiong Hiew King. Its product portfolio in Southeast Asia, Greater China and North America comprises five daily newspapers in 11 editions and three free newspapers, as well as about 30 magazines.

Tiong is the group executive chairman of MCIL.

The management’s clarification came after recent media news, which highlighted there will be a major shakeup of four Chinese-language newspapers under its stable in West Malaysia.

To recap, Malaysiakini’s Chinese edition had reported on Jan 16 (last Friday), citing sources, that Nanyang Siang Pau may become a business newspaper published three times a week, while China Press is expected to focus on the evening market.

Malaysiakini also reported the regional bureaus of Guang Ming Daily are expected to be closed for it to concentrate on the northern region, making Sin Chew Daily the sole national morning Chinese newspaper.

Responding to the news article, MCIL management has stressed the publishing of the four newspapers titles will remain status quo, but employee re-allocation is still in the works.

“Constant staff training and re-training, rationalisation and re-allocation of human resources for improved productivity and efficiency, are consistent initiatives undertaken by the management on a regular basis,” it said.

According to the statement, MCIL’s objective is to remain as the leading Chinese media group with sustainable earnings and dividend growth for investors, while it recognises that its people are the cornerstone of the entire group.

Tiong’s media conglomerate, however, acknowledged the Malaysian segment is facing a soft advertising market, as local businesses and consumers remain cautious and sluggish in their spending.

“This is contributed by the overhanging economic uncertainties, following the government's subsidy rationalisation plan and the impending implementation of the goods and services tax (GST).

The recent slide in global crude oil prices resulting in a weaker ringgit against the US dollar, further exacerbate the volatility in both the public and private sectors, including the Malaysian equity market. Even the nation's Budget 2015 has been restructured by the government,” it explained.

MCIL further said it has faced a tough business environment in the first half of financial year 2015, and is expecting the business sentiments for the rest of the financial year to remain challenging. Hence, it will always seek to further consolidate its positions and rationalise operations.

In six months ended Sept 30, 2014 (6M FY15), MCIL’s net profit dropped 27.7% to RM60 million, down from RM83 million a year ago. For financial year ended March 31, 2014 (FY14), its net profit had also declined by 15%, from RM185 million to RM157 million.

MCIL, which was formed by the merger of Ming Pao Enterprise Corp Ltd, Sin Chew Media Corp Bhd and Nanyang Press Holdings Bhd, was the first dual-listed entity in the Hong Kong bourse and Bursa Malaysia.

Shares of MCIL declined 0.5 sen to settle at 68 sen today, with 941,900 shares traded, giving it a market capitalisation of RM1.147 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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