DIGI 4Q Modestly Disappoints but Margins Are Improving and Outlook Is Benign. Upgrade to Neutral

Maxis Revenues Stabilizing. Ambitious Long Term Goals in Enterprise and Connectivity

Malaysian Telcos: Look for Improvements to Continue in 2019.

DIGI (DIGI MK) 2Q18 Results Show Continued Revenue Growth on Rising Internet Use.

Malaysian Telcos. 2Q18 Was a Good Quarter for Mobile Operators. But Can It Last?

Malaysian Telcos: Mixed Performance as Axiata Struggles While Maxis and DIGI Show Improvements

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Research is provided by our team of experienced analysts. Our work is idea driven, based on independence of thought, sector expertise, and firmly focused on fundamentals and valuation of telecoms and internet names globally. New Street is headquartered in London with offices in New York, Singapore and Australia. 

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Equity Bottom-Up

<p>Following a solid 2Q result from <a href="https://www.smartkarma.com/entities/945" target="_blank" data-smartkarma-citation="entities:945:1">DIGI (DIGI MK)</a>, investors may be a bit disappointed with the 3Q numbers. Service revenue growth slowed and margins came down slightly. We expect revenues and earnings to decline over time given the competitive landscape and pressure from a government looking a to boost its own revenue streams. Given high valuations in Malaysia, a weak growth profile, and rising competition, we expect the stock to underperform and have a target price of MYR3.3. However, in the short term the stock may get some support from its dividend (yielding around 4%).</p>

Following a solid 2Q result from DIGI (DIGI MK), investors may be a bit disappointed with the 3Q numbers. Service revenue growth slowed and margins came down slightly. We expect revenues and earnings to decline over time given the competitive landscape and pressure from a government looking a to boost its own revenue streams. Given high valuations in Malaysia, a weak growth profile, and rising competition, we expect the stock to underperform and have a target price of MYR3.3. However, in the short term the stock may get some support from its dividend (yielding around 4%).

DIGI 3Q18 Results Look a Bit Weak as the Sector Stumbles (Again)

CelcomDigi

DIGI 3Q18 Results Look a Bit Weak as the Sector Stumbles (Again)