KUALA LUMPUR: Kenanga Research is positive on OCK Group Bhd
's announcement that it has signed an MoU with ISCO to jointly pursus the telecom tower business in the Philippines.
It maintained outpeform on the counter an unchanged discounted cash flow-driven target price of 95 sen.
OCK's unit, OCK Vietnam Towers Pte Ltd, entered into the one-year agreement to pursue opportunities to acquire, install, operate, maintain and manage telecom tower assets in the country.
"Besides, the collaboration also allows both parties to explore opportunities in the new towers' roll-out/greenfield projects and potential sale-and-leaseback project from mobile telecom operators."
Kenanga Research noted management's guidance that the Philippines telecommunications industry has tremendous growth potential given its lowest telecom towers per capita at 152 towers per one million capita versus Asean's average of 579.
"The execution of the MOU is not expected to have any financial impact to the group in FY18. Nevertheless, we understand that management is hoping for a positive contribution on its
earnings in the future should the projects are finalized and commercialized."
Limited time offer:
Just RM5 per month.
