KLCI Stock - DIGI / 6947 - 2012 Quarter 1

Company Info 

Market Capital (Capital Size)	3,257,725,000 (Large)
Par Value	RM 0.10

My Analysis 

Forecast P/E now	(4.19-0.25)/0.1452 = 27.13 (Moderate)
Target Price	4.07+0.25 = 4.32 (PE 28.0, EPS 0.1452, DPS 0.25)
Decision	BUY for dividend keep unless stock price strongly below Bolinger lower band
Comment	Revenue increased 1.6% and was continuous increasing since FY09Q2 and also is highest all the time(higher than preceding year corresponding quarter 9.7%), eps decreased 18.7% and also lower than preceding year corresponding quarter 3.3%, cash generated from operating enough to cover financing expenses and got more than enough loan to cover investing expenses, operating margin lower than FY11Q1 but still very high, better liquidity ratio but still as usual at weak level now, higher gearing rato at very high level now, higher debt ratio at historical high, payables repayment period as usual around 6 month, mobile internet continuing growth
First Support Price	4.0
Second Support Price	3.85
Risk Rating	LOW

Research House

RHB Target Price	4.4 (2012-01-20)
MIDF Target Price	4.35 (2012-03-15)
Kenanga Target Price	4.15 (2012-03-28)
CIMB Target Price	3.75 (2012-04-26)
HwangDBS Target Price	3.9 (2012-04-26)
Maybank Target Price	3.6 (2012-04-27)
HLG Target Price	3.72 (2012-05-22)
Jupiter Target Price	4.2 (2012-05-29)
Alliance Target Price	4.08 (2012-06-13)
OSK Target Price	4.07 (2012-06-18)

Accounting Ratio 

Return on Equity	91.27%
Dividend Yield	5.97%
Gross Profit Margin	0.00%
Operating Profit Margin	25.92%
Net Profit Margin	25.86%
Tax Rate	20.99%
Asset Turnover	1.2046
Net Asset Value Per Share	0.16
Net Tangible Asset per share	0.07
Price/Net Tangible Asset Per Share	56.57
Cash Per Share	0.2
Liquidity Current Ratio	0.7538
Liquidity Quick Ratio	0.7294
Liquidity Cash Ratio	0.5612
Gearing Debt to Equity Ratio	3.13
Gearing Debt to Asset Ratio	0.7579
Working capital per thousand Ringgit sale	-10.9%
Days to sell the inventory	5
Days to collect the receivables	27
Days to pay the payables	191

Technical Analysis 

SMA 20	4.044 (Uptrend 12 days)
SMA 50	3.975 (Uptrend)
SMA 100	3.951 (Uptrend)
SMA 200	2.68 (Uptrend)
MACD (26d/12d)	0.05425 ( 0.004769 )
Signal (9)	0.037665 ( 0.004146 )
MACD Histogram	0.016585 (Bullish trend 18 days)
Bolinger Upper Band	4.225
Bolinger Lower Band	3.863

My notes based on 2012 quarter 1 report (number in '000):-
- Higher revenue due to higher contributions from mobile internet revenue and higher handset sales offset by voice revenue amidst higher competitive pressure particularly in the prepaid segment

- Lower pat than FY11Q4 mainly due to inclusion of 2009 to 2011’s tax incentives related to mobile broadband network facilities which resulted in significantly lower effective tax rate

- In the prepaid segment, DiGi’s prepaid customer base was at par with the previous quarter. This was mainly driven by seasonally lower sales and high churn this quarter. ARPU for the quarter was marginally lower at RM41 (Q411: RM42) and this was mainly due to price competition in the IDD sub-segment

- In the postpaid segment, DiGi added 31k new customers (Q411: 39k). The steady growth in postpaid customers continued to be supported by attractive smart-phone/tablet bundles. Postpaid ARPU was slightly lower at RM85 (Q411: RM86) due to festive business closures

- Estimate next 4Q eps after 2012 Q1 result announced = 1226691*0.92/7775000 = 0.1452, estimate PE on current price 4.19 = 27.13(DPS 0.25)
- Estimate next 4Q eps after 2011 Q4 result announced = 1411431*0.88/7775000 = 0.1598, estimate highest/lowest PE = 26.03/23.4 (DPS 0.16)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.42*4*1.05 = 1.764, estimate highest/lowest PE = 19.23/18.66 (DPS 1.48)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.4262*4*1.05 = 1.79, estimate highest/lowest PE = 17.8/15.02 (DPS 1.72)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.4262*4 = 1.7048, estimate highest/lowest PE = 16.6/15.31 (DPS 1.72)
- Estimate next 4Q eps after 2010 Q4 result announced = 1.5151*1.1 = 1.6666, estimate highest/lowest PE = 17.42/14.85 (DPS 1.63)
- Estimate next 4Q eps after 2010 Q3 result announced = 1.4051*1.1 = 1.5456, estimate highest/lowest PE = 15.11/12.46 (DPS 1.74)
- Estimate next 4Q eps after 2010 Q2 result announced = 1.3254*1.1 = 1.4579(10% grow from 1.3254), estimate highest/lowest PE = 15.85/13.04 (DPS 1.99)
- Estimate next 4Q eps after 2010 Q1 result announced = 1.3254(3% grow from 1.2868), estimate highest/lowest PE = 16.27/15.01 (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 (English)

DIGI latest news (Chinese)