KUALA LUMPUR: OSK Research is maintaining its forecast and NEUTRAL recommendation on DiGi.Com pending the release of its 4QFY10 results at month end.
'We think there is a likelihood that DiGi may declare a special dividend for the final quarter, adding to RM1.20 DPS/share paid to-date as part of its progressive capital management plans (internal target to raise net debt/equity to 0.5-0.8x from 0.2x over the mid to longer term),' it said on Monday, Jan 17.
OSK Research said its FY10 DPS forecast is RM2.10/share (more than 8% net yield), implying a final dividend of 90sen/share. The target price on the stock is maintained at RM24.20.
Last Friday, Jan 14, DiGi announced that its unit DiGi Telecommunications Sdn Bhd had submitted a detailed business plan on 14 Jan 2010 to the MCMC in respect of its application for spectrum in the 2600 MHz band.
OSK Research said the submission of the business plan is a condition attached to the earlier provisional letter of award issued by the MCMC in October 2010.
In addition to Digi, 8 other companies were assigned the spectrum, Celcom Axiata, Maxis, U-Mobile, YTL, Packet One, Asiaspace, Redtone and an unknown outfit, Puncak Semangat.
'We view the assignment of the 2.6GHz spectrum to Digi positively in strengthening its longer-term data/mobile broadband roadmap and offerings, allowing a seamless migratory path for its 3G/HSPA network,' it said.
'We think there is a likelihood that DiGi may declare a special dividend for the final quarter, adding to RM1.20 DPS/share paid to-date as part of its progressive capital management plans (internal target to raise net debt/equity to 0.5-0.8x from 0.2x over the mid to longer term),' it said on Monday, Jan 17.
OSK Research said its FY10 DPS forecast is RM2.10/share (more than 8% net yield), implying a final dividend of 90sen/share. The target price on the stock is maintained at RM24.20.
Last Friday, Jan 14, DiGi announced that its unit DiGi Telecommunications Sdn Bhd had submitted a detailed business plan on 14 Jan 2010 to the MCMC in respect of its application for spectrum in the 2600 MHz band.
OSK Research said the submission of the business plan is a condition attached to the earlier provisional letter of award issued by the MCMC in October 2010.
In addition to Digi, 8 other companies were assigned the spectrum, Celcom Axiata, Maxis, U-Mobile, YTL, Packet One, Asiaspace, Redtone and an unknown outfit, Puncak Semangat.
'We view the assignment of the 2.6GHz spectrum to Digi positively in strengthening its longer-term data/mobile broadband roadmap and offerings, allowing a seamless migratory path for its 3G/HSPA network,' it said.
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