DiGi 3Q 2012 report

DiGi 3rd quarter for year 2012 report release today.  It's a good report with net profit up 7.84% and EPS up 7.98%.

What's an excited me is their dividend declared.  Total dividend = 4 cents (3rd interim div) + 8 cents (Special div) = 12 cents div (Single Tier).  Unexpected special dividend declared in this quarter as I thought should be 1Q next year 2013.  So, for the year 2012 up to 9 months, i.e. 3 quarters, total dividend is 23.8 cents [5.9 (1st interim) + 5.9 (2nd interim) + 4 (3rd interim) + 8 (Special)].

-------------------------------------------------------------------------------------------------------------

DiGi Q3 earnings up 7.8% to RM313.3m, dividend 12 sen

KUALA LUMPUR: DiGi.com Bhd's earnings rose 7.8% to RM315.37mil in the third quarter ended Sept 30, 2012 from RM 292.44mil a year ago and has committed RM700mil to RM750mil to grab a bigger share of the mobile internet and broadband market.

It said on Tuesday, its revenue showed a 4.1% increase to RM1.582bil from RM1.519bil. Earnings per share were 4.06 sen compared with 3.76 sen.

DiGi announced a third interim tax exempt dividend of 4.0 sen per ordinary share and a one-off special tax-exempt dividend of 8.0 sen for FY ending Dec 31, 2012.

"The special dividend will be paid from proceeds of the two previously announced capital management initiatives and with this payment, DiGi will have completed the entire cash payout of this capital management initiative," it said.

DiGi said for the quarter under review, mobile internet customers, which also comprise customers who use feature-phones, increased to 5.6 million from 5.4 million.

Its chief executive officer Henrik Clausen said data revenue currently accounts for close to 31% of its total service revenue in the first nine months of the current financial year, and the company would continue driving focus on delivering a quality experience of its data network to ensure sustained revenue growth in this area,

For the nine-months ended Sept 30, 2012, its earnings rose 11.6% to RM960.19mil from RM860.16mil in the previous corresponding period. Its revenue increase by 7.08% to RM4.731bil from RM4.418bil.

"We had committed to invest between RM700 and RM750 million this year as part of our network modernisation programme to cater to the increased demand from data users," said Calusen.

He pointed out DiGi was at the halfway point of rolling out its modernised Tomorrow Network as it sought to provide access to high-speed internet and next-generation services for all its customers.

"In the first nine months of 2012 we have pushed harder than ever to make data accessible and affordable to everyone on a mobile device, and meet our customers' demand for high quality mobile internet experience," Clausen added.

DiGi expecting another good quarter

Source from: The Edge Financial Daily

AirAsia Supremo Tony Fernandes Finally Says Yes To KLIA2

KUALA LUMPUR, Oct 22 (Bernama) -- Frills-free airline, AirAsia Bhd, is now positive on its impending shift to the new low-cost carrier terminal, KILA2, in Sepang, Group Chief Executive Officer Tan Sri Tony Fernandes said.

He said the budget carrier will move its operations to the new airport as soon as it was ready.

The spanking new airport is expected to start operations in April next year.

"The move to the new airport will make AirAsia more stronger," Fernandes said in his latest update on Facebook.

"Looking at our new terminal at KLIA2. Looks cool. Be ready in April. Will make us stronger. We (will) move in as soon as (it's) ready.

"(I've) Been briefed by Aireen Omar (AirAsia Malaysia Chief Executive Officer). We're all positive of the move. Will make AirAsia stronger," Fernandes, now based in Jakarta, said.

Aireen, who took over from Fernandes in July, enjoyed good working relationship with Malaysia Airports Holdings Bhd (MAHB), particularly with MAHB Managing Director Tan Sri Bashir Ahmad.

Aireen had told Bernama that AirAsia was working hand-in-hand with MAHB to discuss and resolve outstanding issues between them with regard to KLIA2.

"I've been personally engaging with Tan Sri Bashir to discuss certain issues on KLIA2," she had said.

The KLIA2 is slated for operations in April next year, handling 45 million passengers in maximum capacity a year.

-- BERNAMA

数码网络第三季净利料双位数成长

（吉隆坡18日讯）在较高数据收入与较低税率带动下，市场预计数码网络（DIGI，6947，主板基建股）2012財政年第三季可取得双位数的净利成长，且將派发每股5.9仙第三次中期股息。

肯南嘉投行分析员预测数码网络將在10月23日公佈的2012財政年第三季业绩中，净利將按年成长14%，至3亿3000万令吉。

分析员表示，净利成长將由较高的语音和数据收入，以及较低的税率扶持，包括移动宽频网络设施的税务津贴。

同时，分析员相信该集团將在第三季派发与前两季相当的5.9仙股息。全年预计派出23.3仙股息，换算成週息率为4.3%。

网络升级工程完成一半

另一方面，数码网络现代化网络计划在2011年12月开始实施，其中超过2500个地点已成功升级，相信將在2013財政年完成其余3000个需升级地点。

网络升级具备长期演进技术（LTE），可让该集团槓桿化现有的网络设施，並可提供如光纤般的速度，以支援即將面市的LTE移动设备。

隨著网络升级工程已进行了一半，分析员相信数码网络在即將来临的业绩匯报会上，將提供更多关于数据和宽频的发展讯息。

据分析员了解，数码网络计划更积极推动宽频市场，未来重心將从中小屏幕如智能手机和平板电脑的数据市场，转移至大屏幕行列，如宽频市场。

如同2012年上半年，数码网络数据收入占其服务收入的30.5%，去年同期为27.5%。该集团有240万名客户，或占总客户的23.5%，属智能手机用户，但活跃使用手机宽频的用户仅达32万人。这显示数码网络的数据营业额在未来仍有充足的成长空间。

在等待数码网络公布第三季业绩的同时，分析员维持该集团2012至2014財政年的盈利预测。目前，分析员將数码网络的合理价格设在5.20令吉，维持「与大市同步」评级。

ASTRO IPO debut on 19-20-2012

IPO:    RM 3.00
Open:  RM 3.03
High:   RM 3.11
Low:   RM 3.00
Close: RM 3.00

Astro debut on main board today with opening price of RM 3.03, i.e. 1% above IPO price.  It's not what anyone expected.  Everyone must think that this counter would perform almost the same like FGV or IHH.  I think most would think that this IPO with 22 cornerstones support should open with premium at least 5% or even more.

Before closed morning session, it hits as high as RM 3.11, i.e. 3.667% premium  While it closed with the price as IPO price.  For those applied via IPO must be disappointed with the debut result today.  It's not worth to waste time to apply from IPO while actually can get it from today with the same IPO price of RM 3.00.

I believe this counter might be good to hold for long term with the attractive dividend policy of 75%.

Good luck for those still holding it.

 -------------------------------------------------------------------------------------------------------------

Astro surprises with weak debut after US$1.5b Malaysia IPO

KUALA LUMPUR, Oct 19 — Pay-TV firm Astro Malaysia Holdings Bhd closed flat in a weak market debut today on concerns its valuation was too high, underperforming other recent big listings as Kuala Lumpur’s booming IPO market looked set to lose steam next year.

Malaysia has defied the market gloom that has seen the value of new listings drop by more than half in the Asia-Pacific excluding Japan this year, becoming the top IPO destination in the region on the back of several government privatisations and a strengthening economy.

But after such a robust 2012, and with Astro’s US$1.5 billion (RM4.5 billion) sale marking the last major listing until the first quarter of next year, the market is expected to cool off.

“For Malaysia, we will see some setback because all the bigger ones have been listed this year,” said Kaladher Govindan, head of research at TA Securities.

“Most of them are somehow government-linked companies. So you don’t have bigger private entities getting listed. It may run out of steam in the second half of next year.”

Astro shares rose as much as 3.7 per cent before erasing gains to close at RM3.00, unchanged from the offer price in Malaysia’s third-biggest IPO this year. Analysts polled by Reuters had expected a rise of at least six per cent.

The IPO by Astro, controlled by Malaysia’s second-richest man Ananda Krishnan, followed Felda Global Ventures Holdings Bhd’s US$3.3 billion offering in June and IHH Healthcare Bhd’s US$2.1 billion flotation in July.

By comparison, Felda, a palm oil firm, rose 16.5 per cent higher on its first trading day. Hospital operator IHH had gained 10.5 per cent on its debut.

“When compared to Felda and IHH, they are big government-linked companies, and investors are more confident in government-backed firms,” said Choo Swee Kee, who oversees some RM700 million worth of assets as chief investment officer at Kuala Lumpur-based TA Investment Management Bhd.

“On the other hand, Astro is more of a privately owned company, that explains its weaker share price performance on its debut today.”

‘Upside potential’

Astro, which also counts state investor Khazanah Nasional Bhd as a major shareholder, returned to public markets after it was taken private in 2010.

Today’s closing price gives Astro a market value of RM15.6 billion, nearly double the RM8.3 billion it was worth when it was taken private.

The price of RM3.00 would translate to a price-to-earnings ratio of 32 times based on estimated earnings per share in fiscal 2013, TA Securities said.

“There were a lot of concerns earlier that the IPO was priced at a hefty price tag, in terms of price-to-earnings ratio,” TA Securities’ Kaladher said of Astro’s share price performance today.

Still, Astro has a near-monopoly in Malaysia’s residential pay-TV market with a subscriber base of 3.1 million, which some analysts said would support the share price in the longer term.

“While its IPO valuation may not appear cheap initially, there is upside potential given the existing low pay-TV penetration of 46 per cent,” Kong Heng Siong and Chan Jit Hoong, analysts at OSK Research in Kuala Lumpur, wrote in a recent report.

Astro will also likely see an increase in average revenue per user as subscribers migrate to high definition TV platforms, while high entry barriers to the industry due to capital expenditure requirements would limit competition, they added.

In its IPO, Astro sold shares at the top end of a marketing range, bolstered by strong demand from cornerstone investors such as US hedge fund Och-Ziff Capital Management and Standard Pacific Capital. The institutional portion of the IPO, or 20.8 per cent of the total, was more than 30 times oversubscribed.

IPO pipeline

The flurry of deals has more than quadrupled Malaysia’s 2012 IPO tally to about US$7.5 billion, accounting for nearly one-quarter of all new listings in the Asia-Pacific excluding Japan this year. That compares with Hong Kong’s US$1.83 billion and Singapore’s US$3.97 billion so far this year, Thomson Reuters data shows.

In Singapore today, units of Religare Health Trust , which owns hospital-related assets, plunged as much as 10 per cent below the initial offering price of S$0.90 in their market debut. The trust, whose assets are managed by Indian hospital group Fortis, raised US$416 million through an IPO.

Malaysia’s next major listing will be the planned US$1 billion offering for independent power producer Malakoff, 51 per cent-owned by MMC Corp Bhd, in the first quarter of next year.

Westports Malaysia Sdn Bhd, operator of the country’s busiest port, is looking to raise as much as $500 million in an IPO in the second quarter of 2013.

The founders of Malaysia’s AirAsia Bhd, Tony Fernandes and Kamarudin Meranun, are also set to kick off an IPO spree in 2013 with three listings worth more than US$500 million.

Astro’s IPO was being handled by CIMB Group Holdings Bhd, Malayan Banking Bhd and RHB Capital Bhd . Several foreign banks were also advisers, including UBS AG, Credit Suisse Group AG, Goldman Sachs Group Inc and JPMorgan Chase & Co. — Reuters