Astro to Shine again?

This was taken from the website " Value Investing in KLSE". As the blogger has done his homework tracking this stock, let us give him our attention.

Astro All Asia Networks plc (AAAN), a Malaysia-based investment holding company engaged in the provision of management services is currently involved in the following business segments. These are:

Malaysian multi channel television, which is engaged in the provision of multi channel direct-to-home subscription television and related interactive television services in Malaysia;

Radio, which provides radio broadcasting services;

Library licensing and distribution, which is engaged in the ownership of a library of Chinese filmed entertainment and the aggregation and distribution of the library and related content,

A magazine publishing business

And others such as interactive content business for the mobile telephony platform, Malaysian film production business, talent management; creation of animation content, television content aggregation and distribution, ownership of buildings, and regional investments in media businesses and other investment holding companies.

Astro is the sole provider of satellite DTH TV service in Malaysia with exclusive DTH rights until 2017. It's the biggest pay-TV operator in Southeast Asia with 2.56M residential subscribers. Its total penetration of Malaysia TV households is 44% to date. This is a highly cash-generative business which generates around RM 0.13 of cash flow per share - per year on average.

Astro is spreading its wings to India,Indonesia(but failed) and Middle East. Due to its sheer size of population in these prospective areas,the volume of business to be generated will be enormous!

The article did an estimate of the value of business in Malaysia.

Its Malaysian DTH monopoly business is valued at RM 3.50 to RM 4.00 per share. But current share price is around RM 2.80 per share.At current price,it's selling at a discount because stability of Malaysian business and future potential are not factored in.

Major shareholders are Tan Sri Ananda Krishnan (42.4%), Khazanah Nasional Bhd (21.4%) and Employees Provident Fund (7.3%).

Recently,rumuors abound that Astro,Measat and Maxis will be 'lumped' together to create more value through cost savings and synergy. This rumour is not new and has been circulating in the industry for sometime now.

This event is very likely to take place some time in the future if the share prices of Measat and Astro is kept for too long at low valuation. This should be an indicator for investors to come in.

So,if you are looking to diversify your investments, Astro could be just that fillip.

Get in at an opportune time when the market hits the wall on unfavourable economic or political news.