Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD
Company Name: TELEKOM MALAYSIA BHD
| Research House: ECMLIBRA | Price Call: HOLD | Target Price: 4.78 |
Telekom Malaysia Bhd (TM MK, Hold, TP: RM4.78) aims to hit the 400,000 customer mark for its high-speed broadband service, UniFi, by year-end. Its Executive VP for Consumer, Imri Mokhtar, said the fibre optic broadband service offering high-speed Internet, phone and Internet protocol TV has been growing rapidly, surpassing the 300,000 mark yesterday. "UniFi is now enjoying a take-up rate of over 20% of the premises passed, surpassing our initial estimates and expectations of 8% to 10%. The service is currently available at 79 exchange areas covering over 1.18m premises," he said. (Financial Daily)
Comment: The 300,000 mark that UniFi activated came in as no surprise to us as we have already imputed a net adds of 196k which translates into 432k subscribers for 2012 in our estimates. This is slightly higher than management's target. Based on the current run rate of c.21k per month, UniFi will achieve 489k of subscribers by end 2012. Therefore, our assumption lands on the conservative side as we believe competitors will marginally hinder the HSBB UniFi growth momentum. Reiterate our HOLD recommendation with the target price of RM4.78. (Desmond Chong)
Comment: The 300,000 mark that UniFi activated came in as no surprise to us as we have already imputed a net adds of 196k which translates into 432k subscribers for 2012 in our estimates. This is slightly higher than management's target. Based on the current run rate of c.21k per month, UniFi will achieve 489k of subscribers by end 2012. Therefore, our assumption lands on the conservative side as we believe competitors will marginally hinder the HSBB UniFi growth momentum. Reiterate our HOLD recommendation with the target price of RM4.78. (Desmond Chong)
Source: ECM Newz Bits 27 March 2012
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