Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD
Research House: OSK
KUALA LUMPUR: OSK Research is maintaining a Neutral recommendation and target price of RM3.03 for TELEKOM MALAYSIA BHD []. It said on Tuesday, March 23 that while news flows surrounding the high speed broadband (HSBB) should sustain the positive sentiment on the stock, the accelerated HSBB operating expenditure and capital expenditure will weigh heavily on TM's margins and profitability over the next two years. It expects marginal HSBB revenue upside. "As highlighted in our previous notes, we are of the view that the demand for HSBB is likely to be driven more by the "perceived value' of what it is able to offer in terms of actual broadband experience as opposed to IPTV in the medium-term. TM also trades at expensive prospective PERs," it said. On Monday, TM inked agreements with 20 content providers to offer content for its soon to be launched IPTV service, which will be offered as part of a triple play bundle. OSK Research said there will a good blend of local and international contents offered when the service is launched on Wednesda. The IPTV service will be made available to all HSBB subscribers for free over three months until June 2010.
Company Name: TELEKOM MALAYSIA BHD
Research House: OSK
KUALA LUMPUR: OSK Research is maintaining a Neutral recommendation and target price of RM3.03 for TELEKOM MALAYSIA BHD []. It said on Tuesday, March 23 that while news flows surrounding the high speed broadband (HSBB) should sustain the positive sentiment on the stock, the accelerated HSBB operating expenditure and capital expenditure will weigh heavily on TM's margins and profitability over the next two years. It expects marginal HSBB revenue upside. "As highlighted in our previous notes, we are of the view that the demand for HSBB is likely to be driven more by the "perceived value' of what it is able to offer in terms of actual broadband experience as opposed to IPTV in the medium-term. TM also trades at expensive prospective PERs," it said. On Monday, TM inked agreements with 20 content providers to offer content for its soon to be launched IPTV service, which will be offered as part of a triple play bundle. OSK Research said there will a good blend of local and international contents offered when the service is launched on Wednesda. The IPTV service will be made available to all HSBB subscribers for free over three months until June 2010.
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