KUALA LUMPUR (Jan 20): DIGI.COM BHD [] shares rose in early trade on Friday after its earnings rose 18.7% to RM394.22 million in the fourth quarter ended Dec 31, 2011 compared with RM332.02 million a year ago, boosted by tax incentives.
At 9.03am, DiGi rose five sen to RM3.93 with 314,900 shares done.
The company had declared a fourth interim tax exempt (single-tier) dividend of 6.5 sen per ordinary share of 1 sen each for the financial year ended Dec 31, 2011.
Digi said on Thursday that the increase in its net profit was mainly due to tax incentives related to mobile broadband network facilities. Its revenue increased 8.1% to RM1.545 billion from RM1.429 billion, with mobile data revenue exceeding 30% of the group revenue.
For the financial year ended Dec 31, 2011, its earnings rose 6.5% to RM1.254 billion from RM1.178 billion.
MIDF Research has upgraded DiGi.Com to a BUY with an increased target price of RM4.35 (from RM3.70), and raised its FY12 and FY13 net profit estimates by 9.1% and 9.0% respectively.
“We continue to like Digi for its strong operations, its future potential in data especially with the adoption of LTE and its continuing commitment to reward its shareholders.
“With an expected total return of more than 15%, we upgrade our recommendation to Buy. Our target price is based on the Discounted Dividend Model, with an estimated long-term dividend payout ratio of 100% and a WACC of 9.04%,” it said on Friday.
At 9.03am, DiGi rose five sen to RM3.93 with 314,900 shares done.
The company had declared a fourth interim tax exempt (single-tier) dividend of 6.5 sen per ordinary share of 1 sen each for the financial year ended Dec 31, 2011.
Digi said on Thursday that the increase in its net profit was mainly due to tax incentives related to mobile broadband network facilities. Its revenue increased 8.1% to RM1.545 billion from RM1.429 billion, with mobile data revenue exceeding 30% of the group revenue.
For the financial year ended Dec 31, 2011, its earnings rose 6.5% to RM1.254 billion from RM1.178 billion.
MIDF Research has upgraded DiGi.Com to a BUY with an increased target price of RM4.35 (from RM3.70), and raised its FY12 and FY13 net profit estimates by 9.1% and 9.0% respectively.
“We continue to like Digi for its strong operations, its future potential in data especially with the adoption of LTE and its continuing commitment to reward its shareholders.
“With an expected total return of more than 15%, we upgrade our recommendation to Buy. Our target price is based on the Discounted Dividend Model, with an estimated long-term dividend payout ratio of 100% and a WACC of 9.04%,” it said on Friday.
