Digi.Com; Hold; RM4.60
Price Target: RM4.95; DIGI MK
Picking up speed

2Q13 in line; 17% higher earnings y-o-y on lower depreciation and higher prepaid revenue. 4.8sen DPS declared – 98% payout. Expect better margins in 2H13; prepaid still the key revenue driver. Maintain HOLD and RM4.95 TP.
 

CapitaMalls Malaysia Trust; Buy; RM1.66
Price target: RM2.05 (Prev RM2.20); CMMT MK
Short-term pain, long-term gain

1H13 net profit in line; 4.35sen DPU declared – 100% payout. MRT closure resulted in pressure on NPI at Sungei Wang Plaza. Trimmed FY13-15F earnings by 1.5-3.5% on expected flat rental reversions at Sungei Wang Plaza and partial rental vacuum from refurbishments at East Coast Mall. Maintain BUY with lower RM2.05 TP.
 

Traders Spectrum – From the Chartroom

Slowly and steadily, the FBM KLCI inched up to reach a high of 1,800.26 last week. At the close of 1,797.74, this represents a weekly increase of 12.1-point or 0.7%. On the chart, the benchmark index is staying on course to resume its uptrend ahead. With  momentum on the rise, we believe the key market barometer – which is on the verge of advancing past the psychological barrier of 1,800 – could progress bit-by-bit to touch the next resistance target of 1,825 next.

Source: HwangDBS Research - 22 Jul 2013