KUALA LUMPUR (Jan 20): CIMB Equities Research said though DiGi’s 4Q11 results met expectations and EBITDA margin was the highest in many years, competition is rising in IDD and wireless broadband.
It said on Friday the telco expects further cost savings from the switch to its new network in FY13, which it had already factored in.
“FY11 results were 2% and 1% above ours and consensus expectations. We tweak our FY13-14 EPS and our DCF-based target price from RM3.60 to RM3.75 for a lower effective tax rate due to tax incentives.
“Maintain Sell as DiGi is expensive and we advocate a switch to Axiata,” CIMB Research said.
It said on Friday the telco expects further cost savings from the switch to its new network in FY13, which it had already factored in.
“FY11 results were 2% and 1% above ours and consensus expectations. We tweak our FY13-14 EPS and our DCF-based target price from RM3.60 to RM3.75 for a lower effective tax rate due to tax incentives.
“Maintain Sell as DiGi is expensive and we advocate a switch to Axiata,” CIMB Research said.
