DiGi.Com Bhd’s share price rose as much as 3.6% or 40 sen to the highest-ever of RM11.60 on May 4 after its first quarter earnings of RM184.66 million beat consensus estimates by a wide margin. The highest-ever for DiGi's share price was RM11.50 on March 13, 2000. DiGi's shares opened at RM11.40, up 20 sen from May 3’s closing price of RM11.20. Within the first hour, there were 1.19 million shares done at prices ranging from RM11.40 to RM11.60. At 10am, it was trading at RM11.50, up 30 sen. TA Securities Research recommended a 'buy' on the stock at RM11.20 with a target price of RM12.80. “DiGi's strong net profit beat TA and analysts’ consensus by 38% and 31% respectively,” it said in a report on May 4. It said DiGi’s net addition in subscribers in 1Q06 was impressive as it grew strongly by 33% year-on-year to end the quarter at 5.1 million customers. “The net addition of 219,000 came above TA's expectation of 199,000 per quarter. Meanwhile, ARPUs were holding up well despite the stiff competition,” it said. TA Research said in terms of valuations, DiGi was trading at a discount compared to the sector average price to earnings ratio (PER) of 14.65 times and 13.6 times FY06 and FY07. Despite that DiGi's share price was trading near its record high, it believed DiGi still offered attractive upside potential based on the new revised target price of RM12.80 including capital repayment and dividend.-theedgedaily
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