Public Investment: DiGi may offer better dividends
Page 1 of 1
Public Investment: DiGi may offer better dividends
Public Investment: DiGi may offer better dividends
Business & Markets 2013
Written by Jason Tan of theedgemalaysia.com
Monday, 22 July 2013 12:45
KUALA LUMPUR (July 22): Telecommunication network operator DIGI.COM BHD [] is expected to offer better dividends in the near term, thanks to its strong cash flow and parent group’s win of a telco licence in Myanmar, Public Investment Bank said.
“In light of its strong free cash flows, low gearing and DiGi’s parent Telenor ASA winning the Myanmar telco licence (in which it needs cash flows to fund capital expenditure), we believe DiGi will be more pro-active to increase its dividends to the shareholders,” Public Investment said in a note today.
The comment came after DiGi declared last Friday a second interim dividend of 4.8 sen a share or a payout of 98% of its net profit.
DiGi's net profit in the second quarter ended June 30 this year expanded 17.2% from a year earlier to RM380 million, while revenue rose 4.6% to RM1.65 billion.
DiGi's net profit accounted for 23.3% and 22.1% of Public Investment's and consensus full-year forecasts respectively.
"We consider DiGi’s 2Q13 net profit to be within expectations as its net profit is projected to improve further in 2H13 on completion of its network modernisation and lower accelerated depreciation expenses," Public Investment said.
Public Investment maintains its “outperform” call for DiGi, with an unchanged 12-month target price of RM5.40 using discounted cash flow valuation.
“DiGi currently offers an attractive risk-reward proposition at the current price level,” the brokerage said.
Moreover, DiGi’s projected dividend yield of 5.0% for FY14 will provide support for its share price, the brokerage added.
The telco's shares rose 0.9% or 4 sen to RM4.64 as at 12:30pm.
Business & Markets 2013
Written by Jason Tan of theedgemalaysia.com
Monday, 22 July 2013 12:45
KUALA LUMPUR (July 22): Telecommunication network operator DIGI.COM BHD [] is expected to offer better dividends in the near term, thanks to its strong cash flow and parent group’s win of a telco licence in Myanmar, Public Investment Bank said.
“In light of its strong free cash flows, low gearing and DiGi’s parent Telenor ASA winning the Myanmar telco licence (in which it needs cash flows to fund capital expenditure), we believe DiGi will be more pro-active to increase its dividends to the shareholders,” Public Investment said in a note today.
The comment came after DiGi declared last Friday a second interim dividend of 4.8 sen a share or a payout of 98% of its net profit.
DiGi's net profit in the second quarter ended June 30 this year expanded 17.2% from a year earlier to RM380 million, while revenue rose 4.6% to RM1.65 billion.
DiGi's net profit accounted for 23.3% and 22.1% of Public Investment's and consensus full-year forecasts respectively.
"We consider DiGi’s 2Q13 net profit to be within expectations as its net profit is projected to improve further in 2H13 on completion of its network modernisation and lower accelerated depreciation expenses," Public Investment said.
Public Investment maintains its “outperform” call for DiGi, with an unchanged 12-month target price of RM5.40 using discounted cash flow valuation.
“DiGi currently offers an attractive risk-reward proposition at the current price level,” the brokerage said.
Moreover, DiGi’s projected dividend yield of 5.0% for FY14 will provide support for its share price, the brokerage added.
The telco's shares rose 0.9% or 4 sen to RM4.64 as at 12:30pm.
Cals- Administrator
- Posts : 25277 Credits : 57721 Reputation : 1766
Join date : 2011-09-08
Location : global
Comments : “My plan of trading was sound enough and won oftener that it lost. If I had stuck to it Iâ€d have been right perhaps as often as seven out of ten times.â€
Stock Exposure : Technical Analysis / Fundamental Analysis / Mental Analysis
Similar topics
» Planters offer 'reliable' dividends: RHBCap
» Can-One seen undervalued – Public Investment
» DiGi ties up with Google to offer Gmail SMS
» IPO Public Investment sets Icon Offshore FV at RM2.01
» IPO Public Investment starts coverage on Malakoff, TP at RM2.18
» Can-One seen undervalued – Public Investment
» DiGi ties up with Google to offer Gmail SMS
» IPO Public Investment sets Icon Offshore FV at RM2.01
» IPO Public Investment starts coverage on Malakoff, TP at RM2.18
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum
|
|