KUALA LUMPUR (July 16): CIMB IB Research has maintained its “Add” rating on DiGi.Com Bhd at RM45.16 with a lower target price of RM5 (from RM5.10) and said DiGi’s 2Q18 results were in line with house/Bloomberg consensus expectations.

In a note July 14, the research house said 2Q18 DPS was at 4.9 sen.

It said Digi raised its FY18 service revenue and EBITDA guidance.

CIMB Research said DiGi’s service revenue was steady quarter-on-quarter (+2.1% y-o-y) in 2Q18.

It said q-o-q, postpaid revenue growth picked up whilst the decline in prepaid revenue slowed down.

“Good cost management with EBITDA margin up 0.5% point q-o-q to 46.8%.

“We forecast modest EBITDA growth of 2.6% in FY18F, then stronger growth of 5.5%/4.0% in FY19F/20F, driven by higher revenue and opex savings.

“Maintain Add with a 2% lower DCF-based target price of RM5.00,” it said.