REDtone signs MOU with Telekomunikasi Indonesia

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KUALA LUMPUR (Apr 13): REDtone International Bhd has inked a memorandum of understanding (MOU) with PT Telekomunikasi Indonesia Tbk to offer ICT services in Indonesia.

In a statement today, REDtone (fundamental: 2.3; valuation: 0.5) group chief executive officer Lau Bik Soon said the MOU was in line with the group’s strategy of building a presence across Southeast Asia and strengthening the company's value-added ICT services.

"Managed value-added services is expected to be one of REDtone’s main growth drivers moving forward and we target to increase contribution from this segment to group revenue to 30% in the next three to four years," said Lau.

REDtone signed the MOU via subsidiary Redtone Data Centre Sdn Bhd while Telekomunikasi Indonesia was represented by its unit PT Sigma Cipta Caraka (TelkomSigma).

TelkomSigma president director Judi Achmadi said the tie-up with REDtone would facilitate the Indonesian entity's growth plans.

For a start, PT Telekomunikasi will capitalise on REDtone's teleradiology expertise.

"We will work with REDtone on its proven managed value-added services, starting with solutions for the healthcare services industry. Currently, we are exploring the possibility of jointly establishing a teleradiology exchange in Indonesia.

"There’s a clear need for a teleradiology hub in Indonesia to provide a 24-hour reporting service that benefits not only hospitals but patients as well. The hub will allow easy access and real-time sharing of quality medical images and clinical information over the Internet, and we can tap on REDtone’s expertise in this area," he said.

The teleradiology exchange is expected to help Indonesian hospitals strengthen radiology service delivery and create cost savings in the health care delivery.

The teleradiology reporting service aims to overcome limited professional resources and shorten the time in providing radiology reports. The service will also allow radiology departments to extend their services to remote areas effectively and economically.

At 12.30pm, REDtone shares fell one sen or 1.2% lower to 81.5 sen for a market capitalisation of RM542.5 million.

A total of 779,800 shares changed hands.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)