Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD
AmResearch Sdn Bhd believes the one-year partnership between Telekom Malaysia Bhd (TM) and Google Inc will serve as a promotional tool for TM to offer online marketing solutions to small-and-medium enterprise (SME) customers.
With the collaboration, selected TM SME customers will be offered Google AdWords marketing coupons, worth RM150-RM500, to advertise on the Google Adwords advertising platform.
"As this is only a one-year commitment, we don''t believe it will have a long-term impact. TM still has the financial capacity to finance its capital commitments and business-as-usual activities," AmResearch said in a statement today.
Moreover, TM is not expected to generate revenue from this venture which would not involve significant cost, it said.
However, TM, vie the tie-up, will attract more in the SME sector to sign up for its "Office in a Box" and "UniFi" packages.
"Currently, UniFi has attracted about 75,000 subscribers, even without this latest promotion. At this rate, we believe it may well achieve 100,000 sign-ups by the end of the year as this new venture would enhance the take-up rate further," it added.
AmResearch maintained a "hold" call on TM for its unique buffer dividend policy of 20 sen per share with a fair value of RM4.00.
-- Bernama
Company Name: TELEKOM MALAYSIA BHD
| Research House: AMMB | Price Call: HOLD | Target Price: 4.00 |
AmResearch Sdn Bhd believes the one-year partnership between Telekom Malaysia Bhd (TM) and Google Inc will serve as a promotional tool for TM to offer online marketing solutions to small-and-medium enterprise (SME) customers.
With the collaboration, selected TM SME customers will be offered Google AdWords marketing coupons, worth RM150-RM500, to advertise on the Google Adwords advertising platform.
"As this is only a one-year commitment, we don''t believe it will have a long-term impact. TM still has the financial capacity to finance its capital commitments and business-as-usual activities," AmResearch said in a statement today.
Moreover, TM is not expected to generate revenue from this venture which would not involve significant cost, it said.
However, TM, vie the tie-up, will attract more in the SME sector to sign up for its "Office in a Box" and "UniFi" packages.
"Currently, UniFi has attracted about 75,000 subscribers, even without this latest promotion. At this rate, we believe it may well achieve 100,000 sign-ups by the end of the year as this new venture would enhance the take-up rate further," it added.
AmResearch maintained a "hold" call on TM for its unique buffer dividend policy of 20 sen per share with a fair value of RM4.00.
-- Bernama
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