MAXIS fair value RM6.10, so low?DIGI,GENTING,E&O,GREENPACKET

DiGi.Com Bhd (DIGI MK, Hold, TP: RM20.00) believes its Internet division will act as a driver of growth in 2010 and2011, back by its expansion plan, said its CEO Johan Dennelind. He said the internet division, comprising data usage with3G and broadband, had to-date contributed at least RM40m to DiGi’s run rate – based on the amount of sales from its services.Dennelind said DiGi would invest RM300m – RM400m annually in capital expenditure for the 2009-2011 period to grow its 3Gnetwork and “ensure enough capacity to support data”. The company targets six to seven million Internet users from bothlarge-screen PCs and laptops using broadband, and small screen hand phones using 3G by year-end. Currently, DiGi’sbroadband subscribers for the large-screen segment alone number to 30,000. (Financial Daily)

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Genting Singapore plc, a unit of Genting Berhad (GENT MK, Hold, TP: RM7.61) which is the final lap of completing theSingapore casino project in Sentosa, registered a smaller loss of S$93.35m (RM227.48m) on the back of a decreasedrevenue of S$140.73m for the 3Q ended Sept 30, 2009. Genting Singapore said yesterday, revenue came in 19% lower thanthe S$174.65m recorded in the corresponding period last year. In tandem with the lower revenue, its losses were also lowercompared to the S$116.83m incurred in the 3Q last year. Genting Singapore said that so far it has, through its wholly ownedsubsidiary Resorts World at Sentosa Pte Ltd (RWSPL), invested S$6.59bn into the Singapore casino project. As at Sept 30,2009, RWSPL has awarded or committed more than S$5bn in project costs and remains on track for the integrated resort’s softopening by January 2010. (Financial Daily)

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Maxis Berhad (MAXIS MK, Fair Value: RM6.10), a unit of Maxis Communications Bhd, has upped the ante on thebroadband face-off among wireless broadband providers by launching the country’s first made-for-mobile movie.Dimensions, a science fiction movie that has been broken up in 11 five-minute episodes, was launched as a free serviceyesterday in a partnership between Maxis and Measat Broadcast network Systems Sdn Bhd, a subsidiary of Astro All AsiaNetworks plc. Presently, the extent of the partnership is limited to the launch of Dimensions. The movie was written and shotexclusively for the mobile market. This stands to contract to other rich mobile multimedia content, which is often repackaging ofexisting content to fit mobile limitations. Maxis’ CEO Jean-Pascal van Overbeke described the movie as an “investment” toshow Maxis users the full capabilities of their mobile devices through the use of mobile-specific content. The Dimensionsepisodes are available for free at its website. Maxis users and Maxis affiliates from around the globe would also be able toaccess the episodes through their mobile devices with no data or download charges. On the commercial aspects of thisenterprise, van Overbeke said it would depend on customer response to the movie. At this point in time, Dimensions will bemonetised through the availability of accompanying accessories such as wallpapers for download and other associatedmultimedia messaging services (MMS). ”It’s an investment, and we don’t expect to see payback right away.” Van Overbekesaid. “We want to showcase where and what (media streaming) could be like.” (Financial Daily)

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Eastern & Oriental Bhd (E&O) has raised a total of RM236m from its rights issue of irredeemable convertible securedloan stocks (ICSLS), which saw an oversubscription rate of 2.9 times above the minimum level. The ICSLS is expected to belisted on Nov 20, 2009. The ICSLS was issued at 65 sen each, offering a coupon of 8% per annum payable annually and issecured against certain assets of the group. ICSLS holders have the option to convert to E&O shares on a one-for-one basisanytime within the 10-year tenure while E&O has the option to convert after two years of issuance once E&O shares exceedRM1. (Financial Daily)

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Green Packet Bhd aims to reverse losses in its next fiscal year after net loss for the nine months ending 30 September2009 widened to RM81.94m from RM17.91m in the same period last year. Green Packet CEO Puan Chan Cheong said its 4GWiMax operator arm, Packet One Networks (Malaysia) Sdn Bhd (P1), is expected to report profits in the second half next yearafter suffering losses that were resulted by heavy investment in deployment of its wireless broadband. Green Packet incurredcapital expenditure of RM337m since 2008, and RM155m will be invested over the next three quarters. Puan said that resultswill start to be seen two years after their investment. After winning the WiMax license in Singapore recently, Green Packet islooking to bid for two more licences in South East Asia next year. (Malaysian Reserve)* * * * *