Bursa Malaysia Stock Watch

Time dotCom (BUY) - Strategically Positioned for Profit Maximization

kltrader
Publish date: Mon, 27 Feb 2012, 02:12 PM
kltrader
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Time dotCom (BUY)

Strategically Positioned for Profit Maximization
  • We left TdC's 4Q11 results analyst briefing feeling positive especiallywith its impressive transformation strategy for data products, shifting focusmore towards leasing business model rather than global bandwidth sales or IRU.
  • TdC acknowledged that collaboration project with Astro is about 20%-25%behind schedule mainly due to delayed civil and mechanical engineeringapprovals from regulatory bodies. More effort is committed to complete coverageexpansion and expect meaningful contributions only from 2H12 onwards.
  • As for the acquisition proposal, TdC does not expect any hiccups whileawaiting High Court approval.
  • Comments: We opine that TdC share priceis currently undervalued. Based on our estimation, TdC's cash and DiGi holdingswould already account for RM0.52 per share (based on DiGi's closing price ofRM3.99 on 24 Feb 2012), leaving RM0.16 per share for the remaining assets witha RM0.26 book value.
  • Maintain our BUY call with unchanged SOP target price of RM0.85. If DiGicurrent share price is considered rather than our TP, SOP would be enhanced by9 sen.

 Source: HLIB Research 27 Feb 2012
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