Company Name: DIGI.COM BHD
| Research House: HLG | Price Call: SELL | Target Price: 3.17 |
DiGi.Com (SELL)
4Q11 Results
'''' FY11 reported revenue of RM5,964m and PBT of RM1,561m came within expectation, accounting for 100% and 101% of our full-year forecast respectively.
'''' The only deviation was net profit which registered RM1,255m exceeded our expectation, accounting for 110% of our full-year forecast but is much below consensus whereby it only account for 87%.
'''' This is mainly due to effective tax rates on approved tax incentives related to mobile broadband network facilities for FY09-FY11.
'''' Declared 4th interim tax exempt dividend of 6.5 sen, translating to a payout ratio of 128.2%. Total declared dividend for FY11 was 17.5 sen vs. 16.3 sen in 2010.
'''' Minor tweaks on earnings forecast imputing guided tax rate for FY12-13 with consideration of voice products' ARPU and MOU trends. As a result, FY12-FY13 EPS were adjusted by +16.1% and +14.9% respectively.
'''' DDM-derived TP is maintained at RM3.17 (based on WACC of 7.4% and TG of 0%).
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KLCI: Sideways ahead of CNY holidays next week''
'''' Ahead of the CNY holidays next week, we expect more sideways movement as bigcaps continue its consolidation whilst lower liners and ACE counters to remain in the limelight. Immediate supports are 1512 (mid Bollinger band), 1502 and 1492 (lower Bollinger band).
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Dow Jones: Still upside bias
'''' Following the triangle breakout, current uptrend remains intact as long as the Dow is able to maintain its posture above the mid Bollinger band or uptrend line supports near 12350. Further support is 12068 (50-d SMA) and 200-d SMA at 11962.
'''' Immediate resistance targets 12753 (Jul 2011 high) and 12876 (May 2011 high), followed by a more formidable resistance near 13000 psychological barrier.
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