Kenanga Research maintains Outperform on DiGi, TP RM4.68 (6947)

KUALA LUMPUR: Kenanga Investment Research is maintaining its Outperform recommendation on DiGi.com Bhd and its target ollrice of RM4.68.
It said on Tuesday this was based on a targeted FY13 enterprise value/forward EBITDA of 10.8 times.
Kenanga
Research said it was maintaining a mid-to-high single digit revenue
growth guidance with a sustainable EBITDA margin. Targeted FY12 capex
of RM700mil to RM750mil remained unchanged.
DiGi had on Monday
reported first half (end June 30, 2012) net profit of RM645mil (up
13.6% on-year), which was in line with the research house's
expectations and accounted for 49.3% and 45.9% of its and the street's
full-year estimates respectively.
The telco declared a higher
second interim net dividend of 5.9 sen, translating into a 142% payout
ratio, which brought the half year dividend per share to 11.8 sen (out
of which 3.51 sen was from the RM509mil capital distribution plan
announced last September).
The ex date for this second interim DPS is set on Aug 24.