Digi

come with Focus Digi.Com Bloomberg: DIGI MK | Reuters: DSOM.KL Malaysia Equity Research PP 11272/04/2009(021317) 15 sept 2008 BUY RM23.20 KLCI : 1,044.03 Price Tar shoot for : 12-Month RM 30.00 Reason for incubate : Company update Potential Catalyst: more than dividend payout, higher(prenominal) scratch guidance Analyst Malaysia Research Team +603 2711 2222 global@hwangdbsvickers.com.my More excitement in 2009 Story: MNP (mobile number portability) has been apply in Klang Valley on a very repose acknowledge during the trial period. Nationwide implementation would take step forward betimes next month. Porting is currently capped at atomic number 6 per celco with trammel branches offering porting services while advertisement is absent. We push to opine Digi as a key beneficiary of MNP precondition its bullnecked commercializeing and brand positioning, especially in the paying(a) segment. line of descent that although Digi lost subscriber marke t fate vs. competitor Celcom in 2Q08, Digi gained revenue market sh are, which is more fundamental than subscriber gains. come out: Going by historical practices, we expect competition to persist in rational when MNP is to the full implemented although competition is expected to intensify.

We do not cast off the new player as dissipated because of its limited determine power as we think its interconnect charges are high. The benefit of MNP would be more apparent next year, when Digi would redeem another harvest-tide number one wood 3G services. Digis focus on higher ARPU postpaid net change over on is the correct strategy Re levance: We remain official on Digi and rei! terate our BUY call on the line of merchandise with a DCF-based price target of RM30.00. Coming from a first gear postpaid base of only 13% of its total customers (vs. 19%-20% of competitors), we see the postpaid segment as Digi new growth driver and that the MNP offers Digi that opportunity. Digi has a greater likelihood of surprising the market on the upside in terms of earnings and dividend payout. though we factored in only 75% net dividend payout ratio, we think Digi can...If you necessitate to get a full essay, order it on our website: BestEssayCheap.com

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