DiGi.Com Bhd, a Malaysian mobile-phone operator controlled by Norway’s Telenor ASA, surged to a record in Kuala Lumpur trading after earnings grew for a third straight quarter.
The stock, the best performer in the benchmark FTSE Bursa Malaysia KLCI Index over the past 12 months, gained 1.6 per cent to RM3.94 at 11:45 am local time. Four brokerages, including RHB Capital Bhd, raised their profit estimates for this year and next after being granted tax incentives to expand its broadband network.
Selangor-based DiGi reported net income of RM394.2 million (US$127 million) in the three months ended December, a 19 per cent growth from a year earlier, according to a stock exchange filing yesterday. Sales rose 8 per cent to RM1.55 billion.
“We like DiGi for its good earnings growth potential through its focus on mobile data while simultaneously enhancing margins,” Lim Tee Yang, an analyst at RHB Capital, wrote in a report today. He upgraded the stock to “outperform” from “market perform” and raised his so-called fair value to 4.40 ringgit from 4.10 ringgit.
HwangDBS Vickers Research Sdn raised its price estimate to RM3.35 from RM3.10, while OSK Holdings Bhd increased its fair value to RM4 ringgit from RM3.11 according to reports from the brokerages today. Hong Leong Investment Bank Bhd also raised its earnings forecast.
The stock has surged 54 per cent over the past year, outpacing a 2.9 per cent decline in Malaysia’s benchmark index.
DiGi said it declared a fourth-quarter dividend of 6.5 sen per share, bringing its total payout for last year to 17.5 sen. -- Bloomberg
The stock, the best performer in the benchmark FTSE Bursa Malaysia KLCI Index over the past 12 months, gained 1.6 per cent to RM3.94 at 11:45 am local time. Four brokerages, including RHB Capital Bhd, raised their profit estimates for this year and next after being granted tax incentives to expand its broadband network.
Selangor-based DiGi reported net income of RM394.2 million (US$127 million) in the three months ended December, a 19 per cent growth from a year earlier, according to a stock exchange filing yesterday. Sales rose 8 per cent to RM1.55 billion.
“We like DiGi for its good earnings growth potential through its focus on mobile data while simultaneously enhancing margins,” Lim Tee Yang, an analyst at RHB Capital, wrote in a report today. He upgraded the stock to “outperform” from “market perform” and raised his so-called fair value to 4.40 ringgit from 4.10 ringgit.
HwangDBS Vickers Research Sdn raised its price estimate to RM3.35 from RM3.10, while OSK Holdings Bhd increased its fair value to RM4 ringgit from RM3.11 according to reports from the brokerages today. Hong Leong Investment Bank Bhd also raised its earnings forecast.
The stock has surged 54 per cent over the past year, outpacing a 2.9 per cent decline in Malaysia’s benchmark index.
DiGi said it declared a fourth-quarter dividend of 6.5 sen per share, bringing its total payout for last year to 17.5 sen. -- Bloomberg
