KUALA LUMPUR (Nov 27): TIME dotCom Bhd (KL:TIMECOM) surged on Thursday to its highest in more than five months, on news of a relatively massive special dividend and more analysts having turned bullish on the stock.
BIMB Securities, CIMB Securities, and Hong Leong Investment Bank (HLIB) upgraded their calls, joining five other research houses with 'buy' calls, lured by prospects of higher cash distribution to shareholders of the internet service provider going forward.
“This upgrade is driven by clearer visibility on capital management, which, in our view, unlocks meaningful upside to shareholder returns via additional special dividends and a higher annual payout ratio,” said HLIB
TIME rose as much as 51 sen or nearly 11% to RM5.28, its highest since July 21. TIME was trading at RM5.26, as nearly three million shares changed hands as at 9.20am. At the last price, the company had a market value of RM9.7 billion.
The consensus is now looking at a dividend of 27 sen per share for the whole of 2025, more than double the payout in 2024.
The remaining two analysts covering the stock are on 'hold' calls. The average target price is RM5.74, based on the 10 analysts tracked by Bloomberg, implying another 10% upside from current prices in the next 12 months.
Shares of TIME are off earlier record highs, but are still up over 20% so far this year, with results meeting expectations as the company racks up more subscribers while keeping its average revenue per user steady.
“At this juncture, the company appears relatively insulated from 5G-driven competition, as its customer base is skewed towards higher-end fibre plans where substitution risk remains low,” said BIMB Securities.
TIME also appears to be signalling “a more aggressive approach to balance sheet management and its willingness to rely on borrowings to fund capex and enhance competitiveness,” the house added.