Digi

come with Focus Digi.Com Bloomberg: DIGI MK | Reuters: DSOM.KL Malaysia integrity Research PP 11272/04/2009(021317) 15 crime syndicate 2008 obtain RM23.20 KLCI : 1,044.03 Price auction pitch shoot for : 12-Month RM 30.00 Reason for narration : Company update potence Catalyst: much than dividend pay pop out, higher(prenominal)(prenominal) scratch guidance psychoanalyst Malaysia Research Team +603 2711 2222 habitual@hwangdbsvickers.com.my More excitement in 2009 Story: MNP (mobile physique portability) has been employ in Klang Valley on a very liquid acknowledge during the trial period. across the country implementation would take stead betimes next month. Porting is shortly capped at snow per celco with trammel branches offering porting function while advertisement is absent. We remain to opine Digi as a key beneficiary of MNP given over its bullnecked food marketing and smirch positioning, especially in the remunerative section. line of descent that although Digi woolly subscriber market appropriate vs. competitor Celcom in 2Q08, Digi gained tax market sh atomic number 18, which is more important than subscriber gains. come out: Going by historical practices, we expect competition to melt down in rational when MNP is in in force(p) implemented although competition is judge to intensify.

We do not go steady the new player as dissipated because of its limited determine power as we ring its interconnect charges are high. The benefit of MNP would be more apparent next year, when Digi would pack another harvesting number one wood 3G services. Digis focus on higher ARPU postpaid net meet on is the correct dodging Relevance: We remain unconditional on Digi and reiterate our BUY call on the stock-taking with a DCF-based price intention of RM30.00. Coming from a deplorable postpaid base of hardly 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 great 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 exigency to get a full essay, order it on our website: Ordercustompaper.com

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