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Friday, February 11, 2011

GPacket - Seals Deal With Time Warner (OSK)

Green Packet Bhd has secured an agreement with US-based Time Warner Cable to provide the latter with its next generation connection management solutions. Time Warner Cable will use customized versions of Green Packet’s Intouch Connection Manager (ICM), Intouch Reporting Server and Intouch Update Server for its Windows and Mac platforms.

Maintain NEUTRAL. We are maintaining our estimates for now pending more affirmative details on the agreement from management, which we expect to be unveiled during the upcoming analyst briefing. Hence, we reiterate our NEUTRAL call at RM0.78, based on an unchanged 8x FY11 EV/EBITDA. The key re-rating catalysts are: i) potential earnings surprises in the near term on solid broadband net adds, ii) a quicker-than-expected earnings turnaround on cost moderation, iii) solution sales to surge on more WiMAX deployment, and iv) expedited coverage expansion to take advantage of fledging broadband take-ups.

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