Stock Name: DIGI
Company Name: DIGI.COM BHD
KUALA LUMPUR: CIMB Equities Research has a Hold call on DiGi.com with a target price of RM31.60.
The research house said the telco would embark on a transformation journey vital for its survival over the next 12 to 18 months and it would cover three areas - network, IT system and distribution.
CIMB Research said as part of the preparations, DiGi is swapping and upgrading its entire network and equipment, which will be completed by year-end.
"When you look at transformation, one of the things you need to focus on is to have an intelligent network. So, we have signed a vendor (China's ZTE) to complete the swap. All these will be 4G ready, everything will be one rack. So, when 4G is ready, it is just going to be a software upgrade," its CEO Henrik Clausen was quoted saying.
DiGi's next area of transformation involves upgrading its IT system such as billing to enable it to respond faster to the market and also support its business model.
CIMB Research said DiGi's last area which it plans to transform is its distribution and its plans are to expand into the underserved areas such as the East Coast and other geographical areas.
Company Name: DIGI.COM BHD
| Research House: CIMB | Price Call: HOLD | Target Price: 31.60 |
KUALA LUMPUR: CIMB Equities Research has a Hold call on DiGi.com with a target price of RM31.60.
The research house said the telco would embark on a transformation journey vital for its survival over the next 12 to 18 months and it would cover three areas - network, IT system and distribution.
CIMB Research said as part of the preparations, DiGi is swapping and upgrading its entire network and equipment, which will be completed by year-end.
"When you look at transformation, one of the things you need to focus on is to have an intelligent network. So, we have signed a vendor (China's ZTE) to complete the swap. All these will be 4G ready, everything will be one rack. So, when 4G is ready, it is just going to be a software upgrade," its CEO Henrik Clausen was quoted saying.
DiGi's next area of transformation involves upgrading its IT system such as billing to enable it to respond faster to the market and also support its business model.
CIMB Research said DiGi's last area which it plans to transform is its distribution and its plans are to expand into the underserved areas such as the East Coast and other geographical areas.
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