1H17 service revenue contracted 1.5% yoy amid soft consumer sentiment and lower IDD revenue. That said, abating irrational competition and cost discipline helped stabilise 1H17 EBITDA margin at 48%. Key trends in 2H17 include: a) rational competition and continuous data monetisation efforts; and b) year-end smartphone launches to lift postpaid subscriber numbers and ARPUs. Maintain MARKET WEIGHT. Digi provides net yield of 4.2% in 2018.

Source: UOB Kay Hian Research - 8 Sept 2017