PETALING JAYA: Astro Malaysia Holdings Bhd
is expected to focus on rebuilding its subscriber base while extracting value from content and adjacent businesses.
The group is also likely to continue streamlining its legacy cost base as competition from global streaming platforms and alternative content-access channels remains intense.
Kenanga Research said Astro’s financial year ending Jan 31, 2027 (FY27) priorities are centred on acquiring new customers through content and value-led packages, while growing adjacent businesses such as Sooka, digital advertising and BizOne.
Cost reduction across its legacy operations remains a key priority as the group seeks to stay competitive against global peers, Kenanga Research said.
“We trimmed our forecast FY27 earnings by 5% to factor in weaker-than-expected advertising expenditure and subscriber net adds,” said the research house, which maintained its target price of six sen and “market perform” call based on an unchanged valuation of 0.25 times the forecast FY27 price-to-book value.
Having attended a recent briefing, Kenanga Research said Astro was expanding the value and reach of its intellectual property (IP) through strategic distribution partnerships with international streaming platforms.
Its films and series continued to feature regularly among Netflix Malaysia’s Top 10, with several reaching No.1, including Sheriff: Narko Integriti, Dongeng Sang Kancil and Project High Council.
Kenanga Research noted that Astro Shaw also captured 52% of the local gross box-office market in FY27 year-to-date, collecting RM59.7mil from releases including Malaikat Malam and Polong. Its upcoming slate includes Chelot and Terbang.
“Looking ahead, Astro could see greater earnings contribution from its expanding IP portfolio, with opportunities to extend content monetisation beyond domestic TV into regional syndication and international streaming markets,” Kenanga Research said.
However, it noted that competition from global over-the-top (OTT) platforms, unauthorised TV boxes and emerging artificial intelligence (AI)-powered music streaming services continued to pose structural challenges. TA Research was more cautious, saying Astro’s pay-TV revamp under Astro One had fallen short of delivering the expected subscription uplift, with customers shifting to lower-priced tiers and causing subscriber attrition and average revenue per user (Arpu) dilution.
“Consequently, revenue has declined. While management expects Arpu to stabilise, we note the continued weakness in the subscriber base and adopt a more cautious stance on the outlook until clearer signs of recovery emerge,” it said.
TA Research ceased coverage on Astro, with its last recommendation at “sell” and a target price of six sen.
Astro recently posted a net loss of RM25.8mil for the second quarter of FY27, versus a net profit of RM16.39mil a year earlier, while revenue fell 7% year-on-year to RM633.75mil. For the first half of FY27, net loss stood at RM24.24mil against a net profit of RM29.87mil year-on-year, with revenue down 7% to RM1.29bil.
