Within expectations. Digi ended FY11 strongly but only due to some well-timed tax benefits. Net of this, earnings were within expectations, down slightly from FY10. In 2012, competitive pressures are expected to rise and valuations are stretched but management was optimistic, guiding for mid to high single-digit topline growth and sustained EBITDA. Further, dividends should be sustained as Digi is likely to undertake more capital management measures. Maintain Hold with a raised EV-derived TP of RM3.74 (+8%) after incorporating forward guidance of lower effective tax rate.

Maybank research (20 January 2012)

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