UPDATE 1-Ming Pao Daily's owner falls in Malaysian debut

(Adds background, updates shares, adds comment from brokerage)

KUALA LUMPUR, April 30 (Reuters) - Hong Kong media group Media Chinese International (0685.HK: Quote, Profile, Research, Stock Buzz), formerly known as Ming Pao, made a weak debut as Malaysia's first dual-listed firm on Wednesday, the result of a cross-border merger agreed last year.

The Malaysia-listed shares in Media Chinese International (MDCH.KL: Quote, Profile, Research, Stock Buzz) opened at 1.09 ringgit per share, on par with the last-traded price of the Hong Kong stock, but then tumbled about 15 percent to fetch 0.92 ringgit after the first 30 minutes.

"We believe valuations are lofty, as the recent sharp appreciation in Ming Pao's share price has run ahead of fundamentals," Malaysia's Affin Investment Bank said in a note, referring to a sharp run-up in the Hong Kong shares.

In January last year, Ming Pao, controlled by Malaysian tycoon Tiong Hiew King, announced an all-share merger with Malaysian Chinese-language newspaper publishers Sin Chew Media Corp and Nanyang Press Holdings.

The merged group owns five newspapers, including Hong Kong's Ming Pao Daily, Malaysia's biggest Chinese daily, Sin Chew Daily, Malaysia's Nanyang Siangpau, China Press and Guang Ming Daily.

Media Chinese International's Hong Kong shares have soared 57 percent since the end of March, closing on Tuesday at $HK2.70 (34.7 U.S. cents) a share.

Affin said the stock looked overvalued and advised investors to sell. It set a target price of 0.89 ringgit a share.

Based on the Hong Kong closing price on Tuesday, the stock traded at more than 18 times forecast earnings per share of 5.9 Malaysian cents for fiscal 2009, a premium to regional media firms such as Singapore Press Holdings (SPRM.SI: Quote, Profile, Research, Stock Buzz), Affin said.

Based on Reuters data and company filings in Malaysia, Media Chinese International's Hong Kong and Malaysian shares have a combined market value of about $622 million. ($1=7.792 Hong Kong Dollar) (Reporting by Mark Bendeich; Editing by Lincoln Feast)