Asia Media Group Bhd - The bus stops here (CIMB)
Asia Media is a stock with deep value that is on the cusp of a successful business transformation that could dramatically alter its growth prospects. It owns rights to three blocks of spectrum and broadcasting licences that enable it to broadcast live content to over 1,500 buses. If successful, its FY14 core net profit could double yoy after the commercialisation of its Live transit TV network by 1Q14. Asia Media trades at 2.9x CY14 P/E, providing a sufficient margin of safety for investors, in our view. We value it at 28.4sen (fully diluted, ex-rights) for 72.5% upside, based on 10.1x CY14 P/E or 35% below our market target P/E of 15.6x. This is within the trading range since its 2011 listing.