Maxis turns up the heat a bit. Maxis' new plan is aimed at winning back market share but the challenge appears rather weak for now. However, there is a risk it may turn up the heat in future. This poses downside risk to Digi's revenue guidance, which the telco has maintained. We retain our 7% 2012 revenue growth and 4.5% net profit growth forecasts for now. Management is also signalling the way for another 8.9 sen/share in capital to be returned may not clear up for some time yet. Maintain HOLD. Our target price is based on DCF.

Maybank Research 26 March 2012

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