Marginally within expectations. On the surface, 2Q12 was within
expectations but there is no doubt competition is rising. EBITDA margin
would have fallen QoQ if not for a well-timed reversal on accruals, and
handset subsidies may rise, which would hurt industry margins. But low
interest rates look set to persist and DiGi does not face such bad
prospects that it warrants a continued sell call. Further, capital
management initiatives should restart once accelerated depreciation ends
in 2013. Upgrade to HOLD, with a EV-derived TP of MYR4.22.
Click here for full report
Source: Maybank Research - 24 July 2012
No comments:
Post a Comment