Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD
HwangDBS Vickers has upgraded Telekom Malaysia (TM) to a "buy" and raised its target price to RM5.00, from RM3.90, previously.
The research house explained that although TM's valuation seemed expensive against its peers, it dominated the high-entry-barrier fixed broadband market.
"TM offers resilient earnings and stable dividend yields, and has strong potential growth from Unifi," it said in a research note today, adding that TM had about 159,000 Unifi subscribers as of Sept 20.
The stock was hovering at RM3.99, up one sen, on Bursa Malaysia at 10.55am.
HwangDBS also said there was a possibility a special dividend of 13.1 sen or share being declared if TM returned the RM468 million proceeds from the recent sale of Axiata stake.
Meanwhile, it said Malaysia should experience a similar demand trend, as seen in other highly-penetrated markets such as Korea and Singapore, given the country's still low-fixed broadband penetration of 28 per cent.
"The rollout of fibre-based high-speed broadband network will hasten the growth of fixed broadband over the next few years and TM will benefit as the largest provider," it added. -- Bernama
Company Name: TELEKOM MALAYSIA BHD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 5.00 |
HwangDBS Vickers has upgraded Telekom Malaysia (TM) to a "buy" and raised its target price to RM5.00, from RM3.90, previously.
The research house explained that although TM's valuation seemed expensive against its peers, it dominated the high-entry-barrier fixed broadband market.
"TM offers resilient earnings and stable dividend yields, and has strong potential growth from Unifi," it said in a research note today, adding that TM had about 159,000 Unifi subscribers as of Sept 20.
The stock was hovering at RM3.99, up one sen, on Bursa Malaysia at 10.55am.
HwangDBS also said there was a possibility a special dividend of 13.1 sen or share being declared if TM returned the RM468 million proceeds from the recent sale of Axiata stake.
Meanwhile, it said Malaysia should experience a similar demand trend, as seen in other highly-penetrated markets such as Korea and Singapore, given the country's still low-fixed broadband penetration of 28 per cent.
"The rollout of fibre-based high-speed broadband network will hasten the growth of fixed broadband over the next few years and TM will benefit as the largest provider," it added. -- Bernama
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