Affin maintains "Buy" call on Time dotCom with a fair value of RM4.05

Published: Tuesday June 11, 2013 MYT 9:34:00 AM

Affin maintains "Buy" call on Time dotCom with a fair value of RM4.05

KUALA LUMPUR: Affin Research is maintaining its “Buy” rating on Time dotCom Bhd with an adjusted fair value of RM4.05 based positive outlook for its regional expansion in Thailand and Indo-China.

“A regional expansion via mergers and acquisitions will be positive in our view if it is strategic in tapping strong data demand from Thailand and possibly Indo-China to fill up capacity in the upcoming Asia Pacific Gateway cable,” it said.

Affin said it favours Time for its cheaper valuations compared to its domestic peers and strong growth prospects in the regional bandwidth business.

Affin noted Time shareholders should re receive their entitlement for the DiGi shares on June 20 where the exercise entails 24 DiGi shares distributed for every 100 Time shares held, involving a total of 137.5 million DiGi shares.

Moving forward, Affin said Time expects domestic data to grow steadily as higher demand is expected expected from mobile operators with the introduction of Long Term Evolution (LTE) services.

“The recent first quarter results suggest that Time could capture additional lumpy node fiberisation contracts as mobile operators continue to fiberise their backhaul for LTE services,” it said.