KUALA LUMPUR: Hong Leong Investment Bank Bhd's (HLIB) maintained its "Hold" call on TIME dotCom Bhd's stock after its first quarter ended Mar 31 (Q1) of 2024 matched its expectations.
TIME's Q1 2024 revenue of RM418 million yielded a core net profit of RM113 million.
HLIB said AIMS Group, CMC Telekom (Vietnam) and Symphony Communication Public Co Ltd (Thailand) were profitable and contributed RM15 million to Q1 2024's bottom line.
"This matched expectations, accounting for 25 per cent and 24 percent of HLIB and consensus full-year estimates, respectively," it said in a note.
On outlook, HLIB said TIME will expand network footprint to meet sustained customer demand andcontinue enhancement of operational efficiency and innovation to deliver the highest quality products and services.
The bank said TIME has also embarked on streamlining the group's organisation to strengthen core businesses.
"Stay Hold with unchanged target price of RM4.73. We like TIME as its retail is gaining momentum on the back of reach expansion and undisputable high value products."Also, data centres are expanding resiliently as IT outsourcing, cloud computing and virtualization are widely adopted. However, we opine that the risk and reward is balanced at current juncture," it added.