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NewsCIMB Research keeps DiGi as Outperform, target price RM34
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CIMB Research keeps DiGi as Outperform, target price RM34
by hlk Thu 21 Jul 2011, 13:12
KUALA LUMPUR: CIMB Equities Research said DIGI.COM BHD []’s 2Q11 reported core net profit was 3% above its forecast and 2% above consensus.
It said on Thursday, July 21 accelerated depreciation is likely to be a drag on 2H net profit.
“Revenues and EBITDA margins were robust and we believe DiGi outpaced its rivals. Although 2Q DPS was 30% lower on-quarter at 30 sen (100% net profit payout), DiGi reiterated that FY11 DPS will be maintained at the FY10 level,” it said.
CIMB Research also kept its growth guidance. It maintained its forecasts, DCF-based target price of RM34 and OUTPERFORM call. The likely re-rating catalysts are the pass through of the sales tax to prepaid users and continued strong growth.
It said on Thursday, July 21 accelerated depreciation is likely to be a drag on 2H net profit.
“Revenues and EBITDA margins were robust and we believe DiGi outpaced its rivals. Although 2Q DPS was 30% lower on-quarter at 30 sen (100% net profit payout), DiGi reiterated that FY11 DPS will be maintained at the FY10 level,” it said.
CIMB Research also kept its growth guidance. It maintained its forecasts, DCF-based target price of RM34 and OUTPERFORM call. The likely re-rating catalysts are the pass through of the sales tax to prepaid users and continued strong growth.
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