SECTOR FOCUS OF THE DAY
Telecommunication: Pressure cooker for mobile and fixed broadband NEUTRAL
In our view, near- to medium-term revenue growth outlook remains weak given the likelihood of further intensification in the mobile wars, with Digi and Celcom likely to raise the ante against both U Mobile’s plan and unifi Mobile’s unlimited mobile data/voice/SMS pricing plans. As U Mobile and unifi Mobile wrestle for new customers on the unlimited mobile data arena, prospects will deteriorate for incremental service revenue accretions in the sector.
Maintain NEUTRAL call given the continued intense competition in both the mobile and fixed broadband markets. Our top BUYs remain Axiata and TM due to the game-changing merger possibility which will significantly enhance their earnings and market share trajectory while Maxis and Digi are HOLDs due to the resistance in gaining traction in revenue growth amid potential loss in competitive advantage under a re-energised Axiata-TM brand.
Others:
N2N Connect: Reshaping trading environment with blockchain BUY
Yinson Holdings: Cruising on a tail wind BUY
Gamuda: 9MFY18 core net profit grows 21% YoY HOLD
NEWS HIGHLIGHTS
Property Sector: Unsold residential, SoHo units at RM22¬bil
Country Heights: Plans to raise RM1b ‘war chest’
Alam Maritim Resources: Navigates through choppy waters
T7 Global: We have not got any job from ECRL project
DISCLAIMER:
The information and opinions in this report are prepared by AmInvestment Bank Bhd. The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmInvestment Bank Bhd. Bhd may from time to time have a position in or with the securities mentioned herein. Members of the AmBank Group Bhd and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice.
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