(T MK/HOLD/RM6.39/Target: RM6.05)

TM’s mass market services (Streamyx, webe and UniFi) will be consolidated into a single brand under UniFi. This bundled service together with LTE network expansion can help boost webe subscriber base in the next 2-3 years (EBITDA breakeven between 3-5 years). Meanwhile, the underlying strength of TM’s broadband business will help support operating CF of RM3.3-3.8b (7.5x EV/EBITDA). Maintain HOLD with a DCF-based target price of RM6.05. Entry price: RM5.50.

Source: UOB Kay Hian Research - 26 Sept 2017