Telekom Malaysia Bhd (TM) gained nine sen or 1.77 per cent to RM5.17 as at 11am today, buoyed by the better-than-expected financial results reported by the utility company last year.
HwangDBS Vickers Research said the telco player recorded a strong finish for2011 where its fourth quarter 2011 earnings were 49 per cent higher,year-on-year, due to tax incentive from last mile broadband investment andhigher turnover.
"We believe Unifi will continue to drive TM's financial year 2012 forecasttopline through steady increases in net adds, where 24 per cent of 1.1 millionpremises passed are Unifi subscriptions," it said in a statement today.
The research firm did not foresee much competition for the year as MaxisHome Broadband's full services would only be launched at the beginning of thesecond half of the year.
HwangDBS put the price target for TM at RM5.30 and maintained its buyrecommendation, backed by its current supremacy in high-speed broadband packagesand sustainable earnings momentum.
"However, further tax incentives, which are due to expire in September 2012,have yet to be priced in," it said. -- Bernama
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