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Wednesday, October 19, 2011

TIMECOM - Webbing Scomi's Global Reach(OSK)

Bernama reported yesterday that Scomi Group has appointed Time dotCom (TDC) to provide private data network services connecting the former’s offices in Malaysia, Indonesia, India, United Arab Emirates and United Kingdom. The agreement will see TDC design, implement and fully manage Scomi’s global network connectivity.

Maintain BUY. In short, we are positive on the Scomi deal but are not altering our revenue and earnings forecasts as we had earlier assumed some upside contribution from TDC’s corporate segment. Thus, based on our sum-of-parts (SOP) valuation for the stock, its Fair Value remains unchanged at RM0.67, which provides a 19% price upside from current levels.

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