KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Star Media Group Bhd (KL:STAR) may be heading toward full-year losses, as analysts warn of an impending earnings vacuum following the completion of its flagship property project and continued headwinds in its traditional media segments.
Earnings Gap Widening Without Property Boost
Star Media’s net profit for 1HFY2025 plunged 98.9% year-on-year to just RM83,000, amounting to a mere 1% of full-year consensus estimates. This drastic underperformance has prompted analysts to sharply revise earnings projections.
Kenanga Investment Bank now expects full-year losses, citing a potential earnings vacuum without the launch of new property projects to succeed the completed Star Business Hub in Shah Alam. The industrial development had been the group’s main earnings driver in recent years.
“An earnings gap looms if no new property projects are launched… the loss of this key profit driver could push the group into the red in upcoming quarters,” Kenanga cautioned.
Media Segments Remain Under Pressure
While the property segment had temporarily masked deeper structural issues, core print and broadcasting operations remain loss-making. The media group reported six straight quarters of losses from its print, digital, and events businesses, only recently turning a marginal pre-tax profit in 2QFY2025.
However, TA Securities remains cautious, warning of continued weakness in both the print and radio divisions amid sluggish ad spending. Inflationary pressures and broader macroeconomic uncertainties have prompted advertisers to tighten budgets, compounding the group’s structural decline in print readership and advertising revenue.
Street Turns Bearish Amid Weak Visibility
Following the 2Q earnings release, shares of Star Media slipped 1% to 37.5 sen, as the market digested the bleak outlook. Both Kenanga and TA Securities maintain ‘Sell’ ratings, citing:
Lack of earnings visibility without new property launches
Persistent losses in the core media business
Weak sentiment in the advertising market
Unless Star Media secures new revenue streams or launches another high-yield project, analysts caution that the group may face successive quarterly losses.
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