"We expect core earnings to grow 15.9% in FY21F, driven by the recurring regional towerco business with higher site additions and co-locations, and stronger local site deployment following some delays experienced in FY20.
"The group should benefit from the JENDELA initiatives, which target to increase 4G coverage to 96.9% by end-2022 (from <92% currently) via the rollout of 1,726 sites nationwide (including 65 sites carried forward from 2020), specifically in the rural areas," said RHB.
OCK currently owns 17 solar farms under the Feed-in-Tariff scheme with a total generating capacity of 11.2MW and continues in search of new solar assets.
Recurring revenue contribution widered to 75% in 9M20 from 61% in FY19 and 56% in FY18, with site leasing making up the highest proportion of recurring revenue at 54%.
The research house, which has a "buy" call on the counter said OCK remains a preferred sector pick with undemanding valuation of 6x FY22 forecast EV/Ebitda.
It raised its target price to 63 sen from 60 sen previously after rolling forward its base year to FY22 and factoring in the FD from the exercise of 9586mil free Warrant-B.