Let's have some discussion about DIGI counter here. I read with interest an article written by the DIGI CEO for TheStar.

Overlooking the Obvious

Seems the DIGI boss is not really that keen on 3G even though they recently acquired Time.Com for the 3G spectrum License.

Latest DIGI 4th quarterly results can be found here. Do note the date of that document is 5th Feb 2008, so it means we are reading some future event. haha

Here is an summary of the management's expectations for 2008.

"These are the Group's revised growth targets for 2008:
. revenue growth at high single digit
. EBITDA margins at mid-40's
. PAT growth around 5%
. capex of RM850 million - RM1.1 billion"

This post has been edited by skiddtrader: Mar 4 2008, 04:38 AM

so do you think currently its share price is a fair price?

i love DIGI's generous dividend, tho

Digi current price is really a bit high...this counter is one of my favourite as well, but the high price make me stop and choose another good counter.

Anyone can share Digi latest EPS, NTA and PE?

Latest EPS is 141.7 cents. So the PER should be about 16.23x for 2007.

Not too sure if the NTA is true for this year or not, but it shows only 1.977 per share according to OSK DIGI database.

Dividend for 2007 was total of RM1.744 per share including RM1.00 special dividend. Latest dividend announced has not set a date yet.



This post has been edited by skiddtrader: Mar 4 2008, 03:12 PM

over my Alliance Investment database, it shows the P/E for DIGI is 16.16

Personally think it is fairly price based on its lastest financial report. Upside potential is now depended on future earning growth.

NTA won't be high for Digi as it gave away lot of capital repayment previously, also, it gave away almost all of its profit as dividend annually so left not much in the company, so NTA won't be high.

It is the high dividend based on its profit that are supporting its share price.

For dividend stock, NTA won't be high as they gave away their profit as dividend so NTA won't be increasing. Best example is BAT, actually for this kind of stock, there are not much left in the company one, what matter the most is their ability to generate profit and cashflow to the company which in turn make the dividend yield attractive enough.

Don't bother about NTA too much in this kind of stock. It is the EPS matter the most.

This post has been edited by cherroy: Mar 4 2008, 03:30 PM

2008e eps 149.20sen p/e 15.90
2009e eps 167.20 sen p/e 14.20

PE based on rm 23.70

ROE = 51.40%

This post has been edited by SKY 1809: Mar 4 2008, 03:53 PM

Got it. Normally I don't follow NTA because I think there is no actual way of evaluating NTA properly especially if the company is property heavy.

So far DIGI has been growing about 5-7% every quarter in terms of revenue and net profits. With the expected capital expenditure for 2008 for rolling out their 3G services, I'm expecting their dividends to fall. I don't think their new share issue for the acquirement of Time.Com is enough to fully pay for the roll-out.

Huh!!! EPS and ROE of Digi is really high...based on these, it should be a good share.

To roll out 3G services, Digi sure need more capital for it, and it's expected Digi will compete with Maxis and Celcom to get more 3G subscribers.

Now, Digi is less than RM23, so sad currently have not enough money to buy.

"THE Malaysia Communications and Multimedia Commission (MCMC) has approved the proposed transfer of Time dotCom Bhd's third-generation (3G) spectrum to mobile operator DiGi.Com Bhd. The MCMC has also given the go-ahead for DiGi and Time to execute a joint business plan for the spectrum, it told Bursa Malaysia."

can consider buy 1 lot (100 shares)
p/s: of course you may top up based on your own financial situation

p/s: i always wish that i am one of the DIGI shareholder, too

just wondering, why is DIGI price hurt so badly? is it because the shares mostly owned by FF? FF cash out, making the price drop drastically?

Actually the sell down for DIGI is not so drastic. Biggest seller was only 1k lots. But I would think it might drop some more to about RM21 maybe. It's falling because there aren't any buying yet and the sentiment is more downfall.

DIGI as far as I know not involve in any politics other than the TIME.com share deal for the 3G license.

waiting at rm20 ;-) come come come to me...

DIGI PER is about 15x at the moment based on 2007 results.

thanks for sharing
according to the database



so probably we could say that at this price (RM 21.60), DIGI buy rate is still low

Yup, because the buyers guessed the market still heading downwards. Only when the up swing come then DIGI will go up again when buyers start queuing. No point queue now because it only be triggered very quickly. I think maybe people are queuing very low price like RM20 or RM19. This is like a net to catch those people throwing stocks!

Does anyone know whether DIGI offer fax service to mobile phones? I called them but they say they don't offer. Can help?

Uhmmm this thread is to discuss DIGI counter in the Bursa stock exchange. Maybe you can bring it up in the Telecommunication Forums for their service enquiries?

DiGi 2Q net profit up 19.2% to RM298m

KUALA LUMPUR: DiGi.Com Bhd posted net profit of RM298.39mil for the second quarter ended June 30, an increase of 19.2% from the RM250.32mil a year ago.

Announcing a stronger set of earnings Tuesday, it also declared an interim dividend of 57 sen single-tier exempt dividend per share.

Its revenue rose 12.8% to RM1.19bil from RM1.05bil while earnings per share was 38.9 sen, an improvement from 33.4 sen a year ago.

For the first half, its net profit increased 18.5% to RM588.53mil from RM496.32mil while revenue rose 13.8% to RM2.36bil from RM2.07bil.

Commenting on the second quarter results, it said the higher revenue was due to the larger subscriber base and higher average revenue per user. However, earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased to 46.7% (2007: 47.4%), resulting from higher traffic charges.

DiGi said the capital expenditure for 2008 was anticipated at around RM850mil to RM950mil compared with the earlier estimate of RM850mil to RM1.1bil, due to increased visibility of the 3G and mobile broadband investments for the year.

URL: http://biz.thestar.com.my/news/story.asp?f...30&sec=business