• Overview. 2Q19 core profit (pre-MFRS 16) advanced 20% and 13% for yoy and qoq respectively on strong data revenue led by the retail segment.

• Key highlights. Its data revenue set a record high of RM227.5m (21% yoy; 7% qoq) driven by the retail segment on strong take-up owing to competitive pricing. Also, fiberization from mobile operators drove wholesale revenue growth.

• Against estimates: inline. 1H19 core profit (pre-MFRS 16) were inline at 51% of ours and consensus estimates.

• Outlook. Management unveiled its growth plan to expand its coverage to new township outside KL (south Kajang), provided that it could achieve economy of scale. We believe this could benefit TIME as an alternative access provider and mitigate the intensified competition within KL.

• Our call. Maintain BUY with RM10.00 DCF-derived TP. We opine strong data demand would continue to drive its revenue growth amidst aggressive investment from mobile operator for 5G readiness and strong retail take up.

Source: BIMB Securities Research - 28 Aug 2019