We lower our FY12/13 core profit forecast by 14%/1% after moderating our assumptions to reflect the higher opex related to the tie-up with Astro and incorporating stronger wholesale revenue growth. The company will wrap up its acquisition of 3 related businesses by mid-2012, which will be EPS accretive from the outset. This will potentially boost our FY13 EPS by 35%, all else being equal. We raise our FV to RM0.87 as we roll over to FY13. The key re-rating catalysts are: (i) stronger than expected results going forward, and (ii) improved earnings from the acquirees. Given the more than 10% upside from current levels, we upgrade TDC to a BUY.
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