DiGi hits record high on positive views

KUALA LUMPUR: Shares of DiGi.Com Bhd hit a record high of RM5.52 at mid-afternoon on Wednesday after CIMB Research said DiGi reported good growth in service revenue of 5% on-year in its first quarter.

At 3.24pm, its shares rose 12 sen to RM5.51 with some 6.66 million shares done between the prices of RM5.39 and RM5.52.

The FBM KLCI was up 5.14 points to 1,864.48. Turnover was 1.01 billion shares valued at RM1.25bil. There were 327 gainers, 389 decliners and 311 counters unchanged.

CIMB Research said in a note on Wednesday that it believes DiGi will continue to gain market share.

“All in all we think DiGi should be able to deliver revenue growth of 6% driven by its expanding 3G network coverage and distribution network.

“This will help it continue to gain revenue market share and we estimate it will build ebitda margin from 45.5% in FY13 to over 46% over the next two years,” it said.