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A small-cap Covid-19 earnings recovery play

■ Media Chinese Int’l’s (MCIL) surprising turnaround in 2QFY3/22 narrowed its 1HFY3/22 core net loss to only RM2.1m, a fraction of our full-year forecast.
■ This is a testament to its print and publishing segment’s earnings, which held up despite our concerns over the pandemic further affecting ad sales.
■ With the world looking to move on to the ‘endemic’ phase, we expect ad sales to pick up and travel to gradually resume. We upgrade MCIL to Add.

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