ASEAN (Indo) & China-focused. Ex-Deputy HoR UBS.

Johannes Salim, CFA

Equity Bottom-Up

<ul><li>Amid weaker-than-expected domestic consumption, management of <a href="https://www.smartkarma.com/entities/6881" target="_blank" data-smartkarma-citation="entities:6881:1">Media Nusantara Citra Tbk Pt (MNCN IJ)</a> touts robust content sales and improved EBITDA margins.</li><li>Our deep dive analysis reveals some disconnects, stemming from rising inter-companies/Group transactions.</li><li>The analysis also points to low earnings quality, resulting in much higher net debt as of Sep 2017.</li><li>MNCN trades at inexpensive 7.9x 2018 EV/EBITDA, but classic value trap could not be ruled out. </li></ul>

Amid weaker-than-expected domestic consumption, management of Media Nusantara Citra Tbk Pt (MNCN IJ) touts robust content sales and improved EBITDA margins.Our deep dive analysis reveals some disconnects, stemming from rising inter-companies/Group transactions.The analysis also points to low earnings quality, resulting in much higher net debt as of Sep 2017.MNCN trades at inexpensive 7.9x 2018 EV/EBITDA, but classic value trap could not be ruled out. 

Media Nusantara Citra: More Questions Than Answers