DIGI.COM BHD
THE best reason to look at this stock, probably, is that technically, it is in oversold territory. The stock has lost 4.47% since Monday.
Its outlook for this year includes expectations that revenue would grow by 5% to 7%, while margins for earnings before interest, taxes, depreciation and amortisation are expected to remain stable.
Telco counters are also known for their generous dividend yields.
Based on its third-quarter numbers, DiGi's dividend yield is running at 4.5%, or 23.8 sen net per share. Its growth story remains intact, according to analysts.
As at the third quarter of 2012, DiGi's revenue market share expanded to 28%, up from 27.5% from end- 2011, largely driven by its above peer average net adds over the past two years, which was also accompanied
by a fairly stable, if not higher, average revenue per user or ARPU, said Affin Research.
It believes that its month-onmonth growth momentum will persist as it consolidates its market share in the youth and Malay ethnic group segments, two key growth areas.
With its revenue and growth trajectory intact, the research house is forecasting core dividend per share (DPS) to improve in the current financial year (FY13).
Although its FY13 DPS assumption is based on a 100% dividend payout, it suspects there is potential for upside to its DPS forecast of 22.6 sen for FY13.
DIALOG GROUP BHD
SEEING that the oil and gas (O&G) sector is looking forward to an exciting year, Dialog, a specialist service provider for the industry, is expected to be a prominent beneficiary based on its expertise and track record.
CLSA had estimated that there would be RM19.6bil worth of O&G services jobs in 2012 in Malaysia, but due to delays, only RM11bil worth of contracts have been announced thus far.
Hence, CLSA reckons 2013 will pick up where 2012 had left off, foreseeing a two times increase in industry contracts to RM24.5bil.
Incidentally, Petroliam Nasional Bhd's (Petronas) capital expenditure for the next five years is some RM186bil.
Among its projects, Dialog is redeveloping the ageing Bayan oil field and the tank terminal project in Pengerang, Johor, with revenue contributions set to stream in from 2014.
According to CIMB Research, investors should stay invested in Dialog, as things can only get more exciting with more marginal oil fields set for development.
CIMB expects Dialog to scale new net profit highs in FY12 to FY14, giving a three-year earnings per share compounded annual growth rate of 20.5%.
Dialog shares had shed 2.08% since Monday.
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