CelcomDigi Berhad
Mon, 20-Nov-2023 08:49 am
by Lee Cherng Wee • Apex Research

Counter

CDB (6947)

Target Price (RM)

4.36

Recommendation

Hold

  • CelcomDigi’s 9MFY23 normalised net profit at RM1.64b came above our expectations due to lower regulatory and network costs, lower tax in absence of Cukai Makmur and lower depreciation.
  • Looking ahead, CelcomDigi is expected to realise their post-merger synergies of RM200-250m in 2023.
  • We maintain our HOLD recommendation with a higher target price of RM4.36 (WACC 6.01%, terminal growth 1%).
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Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

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