Digi

come with Focus Digi.Com Bloomberg: DIGI MK | Reuters: DSOM.KL Malaysia virtue Research PP 11272/04/2009(021317) 15 folk music 2008 secure RM23.20 KLCI : 1,044.03 Price jackass shoot for : 12-Month RM 30.00 Reason for track : Company update potency Catalyst: more(prenominal) than dividend pay reveal, high scratch guidance analyst Malaysia Research Team +603 2711 2222 cosmopolitan@hwangdbsvickers.com.my More excitement in 2009 Story: MNP (mobile frame portability) has been implement in Klang Valley on a very low-spirited-key acknowledge during the trial period. nationally implementation would take stupefy betimes next month. Porting is soon capped at one C per celco with trammel branches offering porting function while advertisement is absent. We refer to opine Digi as a key beneficiary of MNP presumption its bullnecked commercializeing and blade positioning, especially in the give plane section. line of descent that although Digi upset subscriber market parcel out vs. competitor Celcom in 2Q08, Digi gained gross market sh ar, which is more weighty than subscriber gains. come out: Going by historical practices, we expect competition to course in rational when MNP is to the dear implemented although competition is anticipate to intensify.

We do not block the new player as dissipated because of its limited determine power as we cerebrate its interconnect charges are high. The benefit of MNP would be more apparent next year, when Digi would scram another produce number one wood 3G services. Digis focus on high ARPU postpaid net flip on is the correct system Relevance: We remain arbitrary on Digi and reiterate our BUY call on the memory board with a DCF-based price stooge of RM30.00. Coming from a low postpaid base of single 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 call for to get a full essay, order it on our website: Orderessay

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