FIGURE 1: DIGI.COM BERHAD LAST
5 YEARS SHARE PRICE TREND
**analysis
based on 2018 annual report.
1.
GENERAL INTRO: Digi is one of the major mobile
network providers in Malaysia.
2.
NOTABLE POINTS:
a. in
2018 report, DIGI claims to be having Malaysia's largest network, with 89% 4G
LTE coverage, 8,400km fibre network, with 11.7 million customers and 9.2
million internet customers, 9.9GB average monthly data usage by customers,
postpaid average-rate-per-user (ARPU) is RM76, prepaid ARPU RM31
b. in
2018 financial year, CAPEX was RM685 million
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (million): ~6527 million in 2018 annual report, this is a high revenue
company.
b. SHARE
PRICE: from 2015-2019, share price is steady at around RM5
c. EARNING
PER SHARE (EPS): earning per share in last 5 years decreased from 26.1 to 19.8sen
d. FUTURE
POTENTIAL/PROSPECTS: quite dependable and reliable counter, share price expected
to be stable.
e. CAPITAL
EXPENDITURE (CAPEX): spending on purchase of new fixed assets is RM 658
million, around 10% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2018 report, Digi declared a total dividend payout of 19.6 sen per
share, amounts to dividend yield of 4.1 % based on current share price.
b. CONSISTENCY:
consistent dividend payout, last five years (2015-2019) dividends declared range
between 18.8 to 26 sen per share.
c. DIVIDEND
PAYOUT RATIO: in 2018 financial year, Digi paid out about 100% of its earnings
to investors in the form of dividend. The payout ratio is consistent at 99-100%
in last five years.
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2018 financial year, Digi achieved a very good return of
shareholders’ equity, at 209%. In past five years, it has on average very high
ROE that range from 229 to 332%.
b. COST-TO-INCOME
RATIO: cost-to-income ratio is high at about 213%.
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is positive, around RM 433.1 million, equivalent to RM 0.06 per
share
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is very well supported by institutional investors, there are 29 institutional
investors at top 30 major shareholders list, including EPF (13.45%) and PERMODALAN
NASIONAL BERHAD (0.2%), SKIM AMANAH SAHAM BUMIPUTERA (7.61%), KUMPULAN WANG
PERSARAAN (3.4%), TELENOR ASIA PTE LTD (49.00%) and insurance companies and
investment funds.
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