After a strong share price rally since we initiated coverage last October, we are downgrading our call on Time dotCom (TDC) to NEUTRAL from BUY, based on an unchanged SOP FV of RM0.70. While we see its acquisitions of GTL, GTC and AIMS as earnings accretive, we are not factoring their contribution into our forecasts pending further guidance from management. We expect limited price upside, even after including the implied valuations of the 3 companies, which give a blue-sky SOP FV of RM0.74. Following the 5-into-1 share consolidation plus the completion of other proposals by 1QFY12, our FV will be accordingly adjusted to RM3.50.
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