ASTRO + MEDIA.docx

INTRODUCTION Financial Ratios are ratios that are computed to evaluate the performance, progress and achievements of the company with other companies in the same industry. Financial ratios also help the investors, creditors, lenders, analyst and managers in critically analysing an investment opportunity and credit decisions. The ratios compare the risk and return of a firm with that of other firms, thus ratio analysis support inter firm comparison. A lot of research done in the past has shown that the performance of enterprises especially small and medium sized enterprises can be evaluated through the use of financial ratios. In addition to this, there are a number of different types of financial ratios for a company which are aimed to show different aspects of financial performance of the organization. This assignment report conducted is to analyse the financial performances of two selected companies listed list ed in Bursa Malaysia under the Consumer Product Sector within 2015 until 2016 financial years. Based on the DuPont Analysis and Market Value measures, we compare and evaluate the performances of two companies which are Media Prima Bhd and Astro Malaysia Holdings Bhd. Both performances of these companies are primarily measured by using ratio analysis. Those financial ratio that we applied have categorised as liquidity ratio, inventory turnover, efficiency ratio, profitability ratio, financial risk and analysis of growth potential.

MEDIA PRIMA BHD Media Prima was established and launched in 2003 and since then has grown to be a leading media corporation in Malaysia. Their vision is a content powerhouse offering multiple media platform. Their mission is to produce "best-in-class" content, products and services. Content that is accessible via multi-platforms and is unique, relevant and contemporary. With a complete repertoire of media-related businesses including in Television, Print, Radio, Out-of-Home, as well as Content and Digital Media, Media Prima, which is listed on the Main Board of Bursa Malaysia, is also one of Malaysia’s Top 100 largest listed companies by revenue. In addition to having equity interests in Malaysia’s leading free-to-air television stations namely TV3, 8TV, ntv7 and TV9, the Group also owns more than 98 percent of The New Straits Times Press (Malaysia) Berhad (NSTP), Malaysia’s largest publisher with three national newspapers; New Straits Times, BH and Harian Metro. Through its digital media subsidiary, Media Prima Digital embraces technical innovation, digital solutions and creative strategies. It offers a holistic digital consultancy which encompasses creative solutions, diversified platform services and e-commerce expertise. Media Prima Labs meanwhile, is a unit under Media Prim a Digital to further extend the Group’s unique intellectual properties into the expanse of tech innovation and games. Tonton is Malaysia’s number 1 video streaming portal offering FREE, advertising-supported content (AVOD) with over 5.6 million registered users and a growth of 22,000 registrants on a weekly basis. Its vision is to be the number 1 SVOD and home of best content for Malaysians whereas its mission is to be the no. 1 online video site, a must have service for every Malaysian and Malaysian home, to be available everywhere and to prevent piracy. Meanwhile, Media Prima CJ O Shopping Sdn. Bhd. is a media commerce company, which operates home shopping business in Malaysia called CJ WOW SHOP through various platforms such as television, electronic-commerce and mobile commerce. In Radio, the Group is represented by four very popular radio stations namely Fly FM, Hot FM, one FM and Kool FM. Media Prima is also a market leader in Out-of-Home Advertising, represented by Big Tree Outdoor Sdn. Bhd., The Right Channel Sdn. Bhd., Kurnia Outdoor Sdn. Bhd., Gotcha and UPD Sdn. Bhd. The Group also owns a content creation subsidiary, Primeworks Studios Sdn Bhd. It is today Malaysia’s largest production company, producing TV content and feature films since 1984 and 1994 respectively.

CONCLUSION On the basis of the analysis of discussion made in the report, it can be concluded that financial performance of an organization is one of the major factor on the basis of which an investor can evaluate the potential of a company before making investment in that company. In context to this fact, the paper has reviewed the financial performance of two prominent companies namely Media Prima Berhad and Astro Malaysia Holdings Berhad for last two year (2015 and 2016). The ratio analysis is showing that in comparison to Media Prima Berhad, the performance of Astro Malaysia Holdings Berhad  is quite better in terms of profitability, financial stability, and efficiency of business operations. This denotes that investment made within Astro Malaysia Holdings Berhad  will be feasible for investors. However analysis of financial reports of both the company is favouring the existing position of Media Prima Berhad, which showed the impact of external environment over performance of an organization.

*TUKAR YANG BOLD TU. KALAU BETUL, IGNORE JA