We organized a WiMAX Broadband Corporate Day last week which featured presentations by Green Packet (GP) and Intel. GP Group MD/CEO, Mr. CC Puan gave attendees an update on the group while Mr. Michael Lai, CEO of its broadband subsidiary, P1, gave an overview on its broadband initiatives and potential in Malaysia.


Maintain BUY. All in, we feel largely positive on the industry?s latest developments after the event. Our key assumptions are intact as most of management?s guidance is in line with our estimates. To recap, FY10 broadband net adds are expected to hit 180k, with ARPU of RM80 while CPE sales is likely to grow >100% y-o-y to 850k units. Hence, we maintain our BUY call at a target price of RM1.30 based on 8x FY11 EV/EBITDA. The key re-rating catalysts are: 1) returning to the black earlier than expected; 2) accelerated WiMAX implementation in India; 3) potential delays in Y-max launching; 4) increasing WiMAX deployments in the region; and 5) conclusion of SK Telecom?s proposed investment in P1.