Company Name: DIGI.COM BHD
| Research House: HLG | Price Call: HOLD | Target Price: 31.70 |
Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD
| Research House: HLG | Price Call: BUY | Target Price: 4.07 |
DiGi.Com (HOLD)
3Q11 Results
'''' 9M11 reported net profit of RM860.2m came in within expectation, accounting for 76.8% of our full-year forecast and 74.2% of consensus.
'''' DiGi reported a revenue of RM1,520m (+12.5% yoy, +3.5% qoq), EBITDA of RM708m (+19.2% yoy, +5.4% qoq), PAT of RM292.4m (+1.1% yoy, 23.7% qoq).
'''' Declared 3rd interim tax exempt dividend of 37.0 sen, translating to a payout ratio of ~100%.
'''' Strong net adds pushing total base towards 10m. DiGi recorded total net adds of 327k comprising of 40k postpaid and 287 prepaid subscribers.
'''' Data: Accounted for ~30% of overall revenue mainly driven by increasing smartphone penetration, whereby 18% of DiGi subscribers are smartphone users. DiGi also shared that 40% of handset sales are smartphones.
'''' DDM-derived TP is tuned down to RM31.70 from RM32.03 (based on WACC of 6% and TG of 0%).
''
'''' Genting Malaysia (BUY '')
'''' GenM has entered into two sale and purchase agreements with (1) Sedby Ltd and Geremi Ltd to acquire 100% of E-Genting for a cash consideration of RM48m; and (2) Sedby for 100% Ascend International for a cash consideration of RM2m, financed by internally-generated funds.
'''' The acquisition of E-Genting is valued at ~5x to E-Genting's earnings and ~2x to its net assets, which we believe is fair.
'''' With the acquisition, GenM will be able to enjoy cost savings as opportunity cost of RM1.5m (RM50m at 3% FD rate) would be more than compensated albeit marginal (<0.5%) impact on earnings.
'''' Forecasts remained unchanged. Maintain BUY with target price of RM4.07 based on SOP valuation.
''
Positive cues from external markets
'''' Technically, more bullish tone from the external markets is likely to drive FBM KLCI higher towards our envisaged near term resistance targets of 1474 (upper Bollinger band). We expect more profit taking at this level before retesting the next resistance at 1495 (20-w SMA).
'''' Immediate pullback support levels are 1436 (50-d SMA), 1410 (30-d SMA) and the 1400 psychological levels.
''
HSL: Poised for a further breakout
'''' Based on daily chart, the rising trend and momentum indicators coupled with +DMI suggest HSL could stage a meaningful breakout above the downtrend channel to retest RM1.38 (50-d SMA), followed by RM1.44 (30-d SMA) and RM1.52 (100-d SMA). Significant resistance is RM1.65 (200-d SMA). The optimism is supported by a bottoming weekly chart as weekly RSI, slow stochastic and MACD technical readings are on the mend. Accumulate now but stop loss below RM1.18.
No comments:
Post a Comment