TIME Dotcom Bhd's (TDC) recent brand revitalisation could draw in more customers to its fibre broadband services, which are considered an essential utility post-pandemic, opines RHB Research.
According to the research firm, TDC hired renowned local graffiti artist Loo Lok Chern (popularly known as Cloakwork) for its recent brand revitalisation exercise, which introduced new marketing and communication visuals that were "cheeky, bold and fun".
"The new identity was unveiled together with the launch of its 2Gbps FBB service, the fastest in the market.
Meanwhile, the research house also expects the recent access agreement with U Mobile to further strengthen TDC's wholesale business, which continues to yield the ehighest margin within the group.
On the group's data centre expansion, RHB said its purpose-built Cyberjaya centre, AIMS@CJ, should be completed by end-2023.
It added that TDC has secured commitments from existing and new customers for the upcoming second downtown data centre (previously Bangunan KWSP).
Malaysian telecoms firm TIME dotCom said on Tuesday it would divest its RM3.2bil (US$699.45mil) AIMS Group data centre business to U.S infrastructure investor DigitalBridge.
Under the partnership, TIME will sell 49% of the ordinary shares and 100% of the irredeemable convertible preference shares in AIMS Data Centre Holding, and 21% of the ordinary shares in AIMS Data Centre (Thailand), according to a joint statement.
Proceeds from the transaction of some RM2bil will partly be used to pay a special dividend of up to RM1bil to TIME's shareholders, TIME's commander in chief Afzal Abdul Rahim said in the statement. - Reuters
KUALA LUMPUR: Axiata Group Bhd is placing the emphasis on operational resilience and sound business fundamentals as it accelerates its pace towards achieving technology company (TechCo) status. "Building up our digital core remains our focus as we progress towards our goal of becoming The Next Generation Digital Champion.
"Following our net-zero emissions and science-based target commitments last year, Axiata has put in place the governance structures and resources to strengthen and oversee matters relating to sustainability within the group including areas of digital inclusion and climate action," said chairman Tan Sri Shahril Ridza Ridzuan in a statement. According to the group, some of the key actions of resilience taken include the continued reduction of forex exposure, increased hedging activities, reduction of capex, and zero-based costing. "Given these proactive measures, we are targeting mid-single digit revenue growth and high single-digit earnings before interest and tax (Ebit) growth in 2023," added joint acting group CEO Vivek Sood. Announcing its earnings for the 2022 financial year, the telco group said it recorded a net profit of RM9.77bil, nearly 12 times the net profit of RM818.9mil in the previous year as it took into account a RM13.5bil one-off net gain on the Celcom-Digi merger. The group's earnings per share rose to 106.4 sen as compared with 8.9 sen in 2021.
Axiata said the improved bottomline was offset by higher depreciation and amortisation, taxes, net finance cost as well as goodwill impairment. Earnings before interest, tax, depreciation and amortisation (Ebitda) meanwhile increased 9% year-on-year (y-o-y) to RM12.4bil. The group reported revenue of RM21.73bil, which was 8.66% improved over the 2021 period, with higher contributions from all operating companies (OpCos) except Dialog and Ncell. In line with its performance, the group declared a second dividend of five sen a share, which took the overall dividend payout to 14 sen a share in 2022. Over the course of 2022, Axiata said it continued to drive cost excellence by achieving a capex savings of RM1.07bil. The group closed the year with a robust balance sheet as gross debt/Ebitda decreased to 2.9x compared to two previous quarters. This was owing to the higher debt to fund the Link Net and ISOC Philippines tower acquisitions, which was subsequently normalised by the proceeds from the completed mergers and acquisitions. The group reported a healthy cash balance of RM7.5bil. Joint acting group CEO Hans Wijayasuriya said the group's performance was owing to a multi-faceted response by Axiata to the macro headwinds. "The group built resilience and operational muscle while seeding platforms for profitable growth. "FY23 will be equally decisive, presenting opportunities and challenges associated with execution excellence and structural transformation, potentially on the backdrop of global macro headwinds," he added.
The upcoming partial sale of AIMS unit and indicative dividend of 54 cent is quite attractive. Though the data centre biz is growing well over the last few years but I think monetization some portion of it to reinvest in the other areas eg:5G tech and newer green data centre is attractive as well. Understand that many minority shareholders prefer to keep AIMS at 100%, I thin the CEO knows what is best to grow Timecom better. Kudos.
dun be too happy, the special dividend 900mil is paying from the proceed of disposal data center 2billion. So this is not a recurring income and next quarter revenue should drop a lot. If you look at the Balance sheet as at Feb23, the cash balance is only 400mil. Wonder the price will jump or remain stagnant on Monday?
Hence, it would lose the opportunity to realise future share price gains from the growth of the data centre segment and increase its share of contribution to a well diversified revenue and net profit portfolio mix
Quality stock, potential waiting inside. High dividend is reflective of AIMS disposal; on positive side, disposal was to facilitate onboarding partnership with DigitalBridge? This new partneship potentially opens up regional/international earnings to come. Company is well managed; PER bit on high side, could taper downside a bit. Accumulate on dips.
Bit of run-up (probably hindsight to this dividend/deal) from Nov'22. I figure any dips should find attractive bottoming at 4.50~4.75 levels. Per consensus price calls, likely to be brief on downside before recovering to current levels.
I agree with LadyRepins, one of supports is around the 4.78 level, Timecome has been on a bull run for almost a year now, a retrace is bound to happen soon.
Though there's a few competitor eg: Maxis, Digi, TM,etc Time still monopolise the high rise building category eg: Apartments, condo Just walk in to any apartment or condo, most of them using Time fibre broadband.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
wallstreetrookie
9,784 posts
Posted by wallstreetrookie > 2022-11-10 15:29 | Report Abuse
I don't like Timecom. Too overvalued