KLCI Stock - DIGI / 6947 - 2010 Quarter 1

Market Cap : 777500000*22.68 = 17,633,700,000 (Large)
NTA per share : (1379874-920960)/777500 = 0.59
P/BV : 22.68/0.59 = 38.4407 (High)
Forecast P/E now : (3.85-0.01)/0.3368 = 11.4 (Moderate)
ROE : 73.25% (High)
DY : 2.13/22.68*100 = 9.39% (High)
Fixed Asset Turnover(3 year) : (1.0182+0.9776+1.0877)/3 = 0.989 (High)
Liquidity Ratio : 1140418/2097078 = 0.5438 (Low)
Receivables Collection Period : (413469+494148)/2/(4981568/365) = 33 days (Good)
My Target Price : 21.21+2.13 = 23.34 (PE 16, EPS 1.3254, DPS 2.13)
My Decision : NOT BUY (unless price below 22)
My Comment : Revenue growing, good cash flow, high and increased debt, navps decreased
Technical Support Price : 22.2, 22
Risk Rating : LOW

My study based on 2010 Quarter 1 report (number in '000):-
- The Group recorded a 6% growth of revenue from the previous year. This increase was due to encouraging subscriber acquisitions coupled with higher usage of mobile services. However, average revenue per user (“ARPU”) was lower at RM53 compared to the RM56 recorded in same quarter last year, mainly as a result of lower end-user prices
- Similarly, the Group’s earnings before interest, tax, depreciation and amortisation (“EBITDA”) also grew by 6% in the current quarter. Higher revenue as well as reduction of certain operating expenses in tandem with the Group’s ongoing operational efficiency initiatives contributed to the increased EBITDA. On the other hand, the Group saw an increase in sales and marketing expenses, and allowances for credit losses which rose in tandem with our growing postpaid revenue during the same period. Consequently, EBITDA margin was maintained at 44.6% for the current quarter (2009: 44.6%)
- The Group’s profit before tax (“PBT”) grew 1.88%, contributed mainly by the higher EBITDA, slightly off-set by the increased depreciation and amortisation related to the new prepaid billing platform launched during 2nd Quarter 2009
- Estimate next 4Q eps after 2010 Q1 result announced = 1.3254(3% grow from 1.2868), estimate PE on current price 22.68 = 15.5(DPS 2.13)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.317*4 = 1.268, estimate highest/lowest PE = 17.21/15.82 (DPS 1.78)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.3139*4 = 1.2556, estimate highest/lowest PE = 16.27/15.47 (DPS 1.77)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.3016*4 = 1.2064, estimate highest/lowest PE = 17.12/16.21 (DPS 1.75)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.3543*4 = 1.4172, estimate highest/lowest PE = 15.51/14.1 (DPS 1.62)

DIGI latest news from The Edge (English)

Related companies: MAXIS, AXIATA