This article first appeared in The Edge Financial Daily, on December 4, 2015.

Time Dotcom Bhd (+ve)

Shares of Time Dotcom (Time) (Fundamental: 2.7/3, Valuation: 2.4/3) saw a surge in trading interest yesterday, despite the absence of new material announcement. Nevertheless, the stock closed down 0.6% to RM6.96. 

Last Thursday, Time announced its 3Q2015 earnings results. Revenue grew 15.1% y-y to RM173.4 million while net profit jumped 18.1% to RM59.0 million, boosted by higher forex gains of RM19.0 million.

In July, Time paid a special dividend of 73.5 sen for 2015, amounting to RM423.1 million, after disposing of 68.7 million shares in Digi.Com Bhd for RM423.9 million.

Kuala Lumpur-based Time is a data-centric telecommunications and solutions provider, with business reach across the Asia-Pacific region. The company focuses mainly on the business segment — wholesale, enterprise, government and SME — with core products such as data, internet, voice and managed services. In 2014, domestic operations contributed 92.3% of its revenue.

The stock trades at a trailing 12-month P/E of 8.4 times and 2.0 times book.