Stock Name: DIGI
Company Name: DIGI.COM BHD
Research House: AMMB
KUALA LUMPUR: AmResearch reaffirms its HOLD on DIGI.COM BHD [], pending the release of its 3Q10 results at the end of the month.
Its fair value of RM22.60 a share ' based on a DCF valuation method ' hinges on its mobile broadband and the iPhone to drive revenue generation.
'We are looking at a net profit for the quarter in the range of RM270mil to RM275mil, or 34.7sen/share to 35.3sen/share, making our full-year expectation of RM1.05bil or 135.5sen/share. DiGi posted a net profit of RM556mil (71.6sen/share) in 1HFY10,' it said on Friday, Oct 15.
AmResearch said at the topline, it expects the strength to spill over to the 4QFY10, following what it believes has been a strong response to the iPhone 4 launch.
It said 3QFY10 lacked any exciting development to have a significant jump from the previous quarter. Revenue should register around RM1.29bil to RM1.3bil (to reach our full-year expectation of RM5.07bil).
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