DiGi.com

DiGi.com

Postby winston » Mon Jun 13, 2011 9:48 am

Not vested

Valuation/Recommendation

• Maintain HOLD. We keep our DCF-based target price at RM31.20, which implies 17x 2012F PE and 8.5x EV/EBITDA.

The stock offers an attractive dividend yield of 5% net (7% gross), which lends support to the share price.


Source: UOBKH
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: DiGi.com

Postby winston » Sat Nov 25, 2017 9:08 am

Digi falls as removed from Shariah list

by Joseph Chin

KUALA LUMPUR: Digi.com Bhd's share price fell to a low of RM4.48 on Friday in a knee-jerk reaction to its removal from the Shariah list as the telco’s conventional debt-to-total assets exceeded the 33% threshold as at Dec 31, 2016

UOB Kay Hian Malaysia Research said the November 2017 Shariah assessment is based on the latest annual audited accounts for respective companies.

“It is understood that Digi’s conventional debt-to-total asset spiked up towards end-2016 due to the drawdown of existing loan facility to pay for the 900Mhz and 1800Mhz spectrum fees which amounted to RM600mil.

“Since then, Digi’s conventional debt-to-total asset has been regulated back to 30% with the establishment of a RM5bil Islamic bond facility (sukuk) in 2Q17,” it said.

The research house believed the removal from the Shariah list will be an overhang on Digi’s near-term share price performance.

“While we gather that Shariah funds may only have to sell down on their holdings if it is in the money (Digi is down 3% year-to-date), our channel check suggests near-term share price weakness as funds may decide to sell ahead of prolonged weakness,” it said.

The potential reinstatement of Digi to the Shariah list could be one year from now in November 2018 as the April 2018 assessment will still be based on the latest annual audited accounts (Dec 31, 2016).

UOB Kay Hian Malaysia Research said at its target price, the stock is trading at 24.2 times 2018F price-to-earnings (PE) and 13.6x 2018F enterprise value/EBITDA.

“Amid market volatility, Digi offers a 4% net yield, which we believe is sustainable amid pedestrian earnings outlook and low gearing levels. Entry price is RM4.50,” it said.

On Thursday, Digi reaffirmed its commitment to manage its total conventional debt over total assets within the 33% Shariah threshold.

It also pointed out that following the establishment of its Sukuk Programmes in Q2 2017, Digi has regularised its total conventional debt over total assets to 30%.

Digi also said its plan to set up an Islamic funding facility dates back to Q4 2016, notwithstanding its obligation to a lump sum, one-time fee payment to the government for the 900Mhz and 1800Mhz spectrum amounting to RM598.5 million due on Nov 1, 2016.

This enlarged its conventional debt exposure temporarily to RM2.3bil at the end of financial year 2016.

Source: The Star

https://www.thestar.com.my/business/bus ... C7GjXsZ.99
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am


Return to A to D

Who is online

Users browsing this forum: No registered users and 5 guests

cron