DIN-CUBE-RED-w2 Profiled in Dynamic Intelligence Network (DIN)

REDtone’s Near Term Catalysts To Be Led By USP Project, Says Kenanga Research

redTone-MobileSOURCE Bernama

KUALA LUMPUR,– Kenanga Research has forecast that REDtone International Bhd’s near term catalysts would be led by its RM82.5 million Universal Service Provision (USP) project, as well as RM25.0 million spectrum resource sharing fee from Maxis.

“The group’s future earnings are likely to depend on the ability to secure more USP projects and the degree of aggressiveness of the Maxis 4G LTE services rollout, which we have yet to be imputed into our forecast,” it said.

REDtone International will soon recognise a sizeable revenue from the USP project as well as its maiden spectrum sharing fee from Maxis.

Based on Kenanga Research’s estimation, REDtone has recognised about 20 per cent of the USP project in the third quarter 2013.

In a research note today, it said REDtone‘s nine months net profit of RM9.9 million came within its expectation.

“Together with the significant cost synergy, as a result of REDtone‘s larger economics of scale in the fourth quarter 2013, this should bring its full-year net price close to an estimated RM23.6 million, which is what we have forecast,” it added.

Kenanga Research said the net profit forecast for 2013 is more than a 10-fold year-on-year jump, and expects in 2014 for REDtone to register a net profit of RM25.0 million (+6.0 per cent growth year-on-year).

It said the group’s pre-tax profit for the nine months, meanwhile, soared 36-fold to RM12.3 million, thanks to the divestment of non-core and loss-making business as well as from the higher date revenue.

For the full financial year, it expects the REDtone group to declare a 1.5 sen DPS, which implies a 3.4 per cent dividend yield and translates to a 30 per cent payout ratio (in line with its dividend policy of a minimum 25 per cent payout ratio).

Kenanga Research has maintained its “outperform” rating on REDtone with the target price of 56 sen.

source link via REDtone’s Near Term Catalysts To Be Led By USP Project, Says Kenanga Research — BERNAMA


Additional Resources
View Category = Malaysia, by using the following link, or subscribe to Malaysia‘s RSS Feed, or our Main Site Feed.

To View current Malaysian MVNO Companies, please use the following Links


Want to see other Company Profiles?

*Use the Menu Above, to Jump to the Respective Companies Listing Page

** Pop Up Blockers may disable Menu

Image Credit; Logo © REDtone Mobile

All trademarks mentioned in this release are the property of their respective owners

Share

Image Credit(s): (c) All trademarks mentioned in this release are the property of their respective owners

Please take our Survey to help improve the site.5f7232aa8d37115b23583a025e20ef22
BROKEN Link, inaccurate Information, please contact us, and we will check it, and Fix It!
For those of you looking wanting to be included in our site; please use the following Contact Form. If you are an International Roaming MVNO Provider, and want to be included in our upcoming listings, and expose, then please complete the following form.


Copyright policy: All content on this site are the copyright of MVNO Dynamics, unless cited or stated. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of information on the Internet. So our reproduction policy is as follows: You may quote up to 400 words of any of our posts, and articles on the condition that you attribute the credit to MVNO Dynamics and either link to the original article or to www.mvnodynamics.com. All other use is prohibited. MVNO Dynamics will not be liable for any errors or omissions in this information. This site does not mean to harm, or encourage to harm any companies or person(s). Please Refer to our Legal Disclaimer for further information.