BUY, TP: RM4.66

The fair value of TdC’s 3.5% stake in DiGi is pegged at RM5.14 per share.

http://klse.i3investor.com/servlets/ptres/13117.jsp

Time Dot Com 3Q net profit down 21% to RM28mil

Time Dot Com Bhd’s third quarter net profit fell 21% to RM28.24mil from RM36mil a year ago due to lower dividend income, higher depreciation charges and higher cost incurred for cable repair works.

However, its revenue rose 19.8% to RM131.93mil from RM110mil a year ago due to contributions from all product categories, led mainly by data products with an increase of RM19mil.

Earnings per share fell to 4.93 sen from 6.30 sen a year ago.

For its nine months 2013, its net profit quadrupled to RM454.6mil from RM102mil a year ago while revenue was up 34% to RM399mil from RM297mil a year ago.

Moving forward, the group said it would explore new growth opportunities with an emphasis on regional wholesale bandwidth, international submarine cable systems and data centre markets, particularly in the Asean region.

“Coverage and network expansion into the small-to-medium enterprise and consumer space via the Group’s Fibre-to-the-Office and Fibre-to-the-Home initiatives and partnership with Astro may require higher costs for initial set up and deployment.

“Further, new data centre and other potential expansion initiatives may in the initial stage also result in some margin compression whilst revenue growth is expected to be progressive.

“The said initiatives are, however, expected to benefit the group in the longer term,” it said.

The group expects its 2013 results to remain positive.