(DIGI MK/HOLD/RM4.87/Target: RM5.15)

Anecdotally, we note strong marketing synergy between Digi’s mobile business and Digi-X. Strong parentage lends financial credibility and helps Digi-X secure technical partnerships. On the other hand, when Digi-X markets their solutions (usually to SMEs), it helps open doors for Digi to market their postpaid plans to the enterprise segment. We are positive on synergies. Maintain HOLD and DCF-based target price of RM5.15. Entry level: RM4.65.

Source: UOB Kay Hian Research - 19 Sept 2017