KUALA LUMPUR (March 15): CIMB Equities Research is more negative on DiGi in light of rising competition from Maxis in the migrant market and low likelihood of the 8.9 sen capital distribution it had earlier anticipated for FY13.
It said on Thursday that DiGi downplayed the threat from Maxis’s latest prepaid plan during Wednesday’s luncheon.
“But we think that Maxis is determined to wring some market share from DiGi, the market leader among migrant workers.
“We remove our assumption of capital distribution in FY13, tweak our forecasts but maintain our DCF-based target price of RM3.75. Maintain Sell,” CIMB Research said.
It said on Thursday that DiGi downplayed the threat from Maxis’s latest prepaid plan during Wednesday’s luncheon.
“But we think that Maxis is determined to wring some market share from DiGi, the market leader among migrant workers.
“We remove our assumption of capital distribution in FY13, tweak our forecasts but maintain our DCF-based target price of RM3.75. Maintain Sell,” CIMB Research said.
