Telekom Malaysia (Company Update): Riding on the fixed line growth

Date: 
2012-03-14
Firm: 
ECMLIBRA
Stock: 
TM
Price Target: 
4.78
Price Call: 
HOLD
Last Price: 
6.31
Upside/Downside: 
-1.53 (24.25%)

Maintain HOLD; TP: RM4.78

Weare positive over TM's HSBB Unifi growth momentum that has beefed up FY11internet revenue which we believe would further drive up future growth.However, our HSBB Unifi net adds assumption is on the conservative side toaccount for competitions going forward. Consequently, after revising earningsby 1%-24% in FY12-FY14, we upgrade our TP from RM3.70 to RM4.78 based on theGordon Growth model imputing 4.5% long term growth and 30 sen per share ofcapital distribution in FY12. However, given the rich valuation, we maintainHOLD on TM


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amitk

can go to RM10

2012-03-15 10:50

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