KUALA LUMPUR: Shares of DIGI.COM BHD [] jumped on Friday, Oct 14 on after a research house said it maintained a Buy at RM30.88 and target price of RM33.90.
At 4.12pm, the telco was up RM1.02 to RM31.90. There were 310,600 shares done.
The FBM KLCI fell 3.65 points to 1,441.22. Turnover was 859.19 million shares valued at RM931.89 million. There were 276 gainers, 423 losers and 242 stocks unchanged.
UOB Kay Hian Malaysia research said it expected DiGi to recognise about RM145 million in accelerated depreciation of its network in 3Q11, similar to 2Q11's. The company is upgrading its infrastructure to be LTE-ready.
'Hence, net profit could fall 17% on-year to RM240 million in 3Q11 (+2% on-quarter). Core net profit, however, is expected to improve 2% on-quarter to RM365 million (+26% on-year), driven by the festive Hari Raya season.
'Dividend for 3Q11 could drop 40% yoy to 30 sen/share (1% net yield), premised on a 100% payout vs 134% a year ago. A larger payout is expected in mid-2012 when DiGi completes a proposed capital management exercise.
'DiGi is our sole BUY in the cellular space for its 10% capital upside to our DCF-based target price of RM33.90 with a 7% gross yield,' it said.
At 4.12pm, the telco was up RM1.02 to RM31.90. There were 310,600 shares done.
The FBM KLCI fell 3.65 points to 1,441.22. Turnover was 859.19 million shares valued at RM931.89 million. There were 276 gainers, 423 losers and 242 stocks unchanged.
UOB Kay Hian Malaysia research said it expected DiGi to recognise about RM145 million in accelerated depreciation of its network in 3Q11, similar to 2Q11's. The company is upgrading its infrastructure to be LTE-ready.
'Hence, net profit could fall 17% on-year to RM240 million in 3Q11 (+2% on-quarter). Core net profit, however, is expected to improve 2% on-quarter to RM365 million (+26% on-year), driven by the festive Hari Raya season.
'Dividend for 3Q11 could drop 40% yoy to 30 sen/share (1% net yield), premised on a 100% payout vs 134% a year ago. A larger payout is expected in mid-2012 when DiGi completes a proposed capital management exercise.
'DiGi is our sole BUY in the cellular space for its 10% capital upside to our DCF-based target price of RM33.90 with a 7% gross yield,' it said.
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