OCK eyes fibre-to-the-home undertaking

PETALING JAYA: OCK Group Bhd is eyeing the fibre-to-the-home or FTTH undertaking being tendered by the Malaysian Communications and Multimedia Fee.

The undertaking, value RM3.9bil, includes the laying and commissioning of latest fiber optic cables throughout six areas to assist 0.4 million premises.

It’s an extension to the high-speed broadband part one and two tasks that had been awarded completely to Telekom Malaysia Bhd previously, RHB Analysis stated in its newest report.

However now it comes on high of the present fibre rollout below the Jalinan Digital Negara (Jendela) initiative.

The analysis home stated OCK can also be well-positioned to profit from a rebound in web site contracting revenues, from 4G web site growth and 5G rollout whatever the authorities’s 5G coverage consequence.

It additionally expects a robust restoration within the home contracting income parked below the telco community providers (TNS) section in monetary yr 2022, given the excellent order e-book of over RM280mil, which is a brand new excessive (58% of FY21 income).

This consisted of common service provision claw again tasks, and the satellite tv for pc broadband wi-fi entry contract (RM115.2mil) below the Jendela programme.

It stated home TNS income grew 9% in FY21 after declining for 3 consecutive years, whereas contracting income stabilized within the fourth quarter of 2021.

OCK can also be in discussions with Digital Nasional (DNB) for extra co-locations and new 5G websites, having inked co-locations on 32 websites up to now.

To satisfy its 5G inhabitants protection goal, DNB is concentrating on to roll out 7,500 new websites by end-2024 from 4,000 by end-2022

As for its site-leasing enterprise, it continues to supply excessive recurring earnings.

Whole websites below possession (throughout Malaysia, Myanmar and Vietnam) stood at about 4,800.

It’s concentrating on to amass 800 websites in Vietnam in FY22 (FY21: 506), with excellent orders for 153 built-to-suit websites in Myanmar for Mytel.

The analysis home stated the group’s robust recurring income and earnings earlier than curiosity tax depreciation and amortization of about 60% and 70% would offer an excellent earnings draw back buffer.

RHB adjusted its FY22 to FY23 core earnings forecast from minus 7.3% to five.1%, primarily factoring in weaker contributions from its regional towerco.

The impression is partially offset by tax incentives and a rebound in home contracting revenues, it stated.

It maintained its “purchase” name with a goal value of 56 sen per share.

RHB additionally cited key draw back dangers for its name on delays within the web site rollouts, execution and weaker-than-expected earnings.


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