Tuesday, November 24

Hwangdbs raises tm’s target price to rm5 share

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POSSIBLE DIVIDEND: HwangDBS says there is a possibility a special dividend of 13.1 sen per share being declared if TM returns the RM468 million proceeds from the recent sale of Axiata stake.

KUALA LUMPUR: HwangDBS Vickers Research Sdn Bhd (HwangDBS VIckers) has upgraded Telekom Malaysia Bhd (TM) to a ‘buy’ and raised its target price to RM5 per share, from RM3.90, previously.

The research house explained that although TM’s valuation seemed expensive against its peers, it dominated the high-entry-barrier fixed broadband market.

“TM offers resilient earnings and stable dividend yields, and has strong potential growth from Unifi,” it said in a research note yesterday, adding
that TM had about 159,000 Unifi subscribers as of Sept 20.

The stock was hovering at RM3.99, up one sen, on Bursa Malaysia at 10.55am.

HwangDBS also said there was a possibility a special dividend of 13.1 sen per share being declared if TM returned the RM468 million proceeds from the recent sale of Axiata stake.

Meanwhile, it said Malaysia should experience a similar demand trend, as seen in other highly-penetrated markets such as Korea and Singapore, given the country’s still low-fixed broadband penetration of 28 per cent.             “The rollout of fibre-based high-speed broadband network will hasten the growth of fixed broadband over the next few years and TM will benefit as the largest provider,” it added.— Bernama