DiGi.Com; Hold; RM4.70
Price Target: RM4.95; DIGI MK

DiGi.Com unveiled its 4G LTE products last Friday the 5th July 2013, comprising broadband packages for tablets and dongles. These were in the form of add-on packages of RM8/Day for 1GB or RM30/Month for 1GB with the exception of higher tier bundles (which get 4G TLE for free), while coverage was limited to pockets of areas in the Klang Valley.

While this is a positive step for DiGi in terms of utilising its 4G LTE spectrum, we think adoption would be slow due to the requirement to tack on more cash for a package which Maxis is offering for cheaper (a comparative offering would be the SurfMore75 offering 5GB/Month for RM75, vs. DiGi’s 4GB/Month for 3G+1GB/Month for 4G LTE for RM89). DiGi as yet has not unveiled their smartphone equivalent LTE plans, while 4G LTE plans currently do not support Apple devices. We maintain our Hold call on DiGi and price target of RM4.95.

Source: HwangDBS Research - 8 Jul 2013