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Overview
Financial Highlight
Headlines
Business Background Time Dotcom Bhd is a telecommunications company that offers fixed-line and enterprise services, including data (broadband and wireless), voice, and data center services, where the majority of revenue comes from. The company divides its customer base into three segments: wholesale, retail, and enterprise. Retail and enterprise deal with households and companies, respectively. The wholesale segment provides backhaul services to Asia-Pacific and Malaysian telecommunication companies. This is enabled through the company's ownership of telecommunications infrastructure, specifically a fiber-optic cable network.
  Yusofff Time DotCom Assuming the Company is able to generate 10-15% growth consistently over the years and couple with the continuous cash generation as per % of sales, with an average industry PE of 20 (conservative PE) the company could derive a fair value of RM 14.97 which is 37-38% upside from their current share price. https://jawplace.com/the-growth-of-data-usage/ 09/08/2020 11:19 AM Kristal Earnings Projection – Valuation as at 8/8/2020 Share price = RM 10.86 Market Capitalisation = 6,599 million Net Cash Position = 420 million Cash per share = 0.70 cents (one of the highest cash per share company in bursa Malaysia) Current PE = 18 (Compare to TM pe of 31.27. Industry PE range 20 to 25). EV/ EBITDA = 11.59 ROE = 11% (Industry average of 8-10%) NTA = 4.63 Debt Ratio = 0.03 Cash flow to sales ratio = 55% (layman term – more than 50% of their sales are converted to cash) Average Profit Margin = 30% – 40 Assuming the Company is able to generate 10-15% growth consistently over the years and couple with the continuous cash generation as per % of sales, with an average industry PE of 20 (conservative PE) the company could derive a fair value of RM 14.97 which is 37-38% upside from their current share price. Note: We do prepare a more detailed report on this company. Please feel free to drop us a whatsapp or text to request for the free report! 09/08/2020 10:59 PM  Choivo Capital Pretty good result. I think normalized earnings for them is about 280m a year, growing at about 10-15% per annum. 21/08/2020 5:44 PM wallstreetrookie This counter is so damn strong. P/E at 20 Share price still stable at RM11.50 ROE: 11.38 healthy balance sheet clean cash flow strong fundamentals. I wish I can put every cent of my savings in this counter 29/08/2020 11:35 AM wallstreetrookie Bullish counter despite selling pressure in all tech counters. Positive growth potential. 05/09/2020 5:01 PM wallstreetrookie Only person promoting this counter. But if you are the value investor type, look no further. 05/09/2020 8:33 PM wallstreetrookie High-speed Internet and cloud computing will continue to expand for decades 05/09/2020 8:34 PM foreverchung DELINK yourself from herd mentality. Remember what you did for your research and why you bought this counter. What is the point buy high sell low, then rejoin again when there is a 'rebound' and ended up getting trapped again? To all students / investors alike. Think like an investor, BRAVE THE STORM with your company, especially the ones that have rewarded you and not skimped on hardwork. This is applicable to all stocks. If your passive income took a hit, paper loss is paper loss. Go do something about your active income, DISTRACT yourself from the market negativity. Remember your initial goals. All the best in your journey to financial freedom. 10/09/2020 10:28 AM Choivo Capital https://choivocapital.com/2018/11/28/an-analysis-of-time-dotcom-berhad-time/ In case some people may not know. I wrote on this before back then. Since then the profit have doubled, while share price maintain. My thesis still stands, and i have rebought and held since 3 months ago. Good luck. 10/09/2020 11:42 AM foreverchung This company's earning is resilient. Take this as your external EPF, this is a true forward looking company. 21/09/2020 5:08 PM mf Dow futures fall 200 points as Apple and Amazon shares decline after earnings 30/10/2020 12:54 PM Newbieinshare Will the market crash if budget 2021 cannot be passed this coming Thursday (26/10/2020)? These are the 4 possible scenarios: 1. Parliament will be dissolved and a snap election will be called 2. A state of Emergency in the whole country will be declared by YDPA 3. Muhyiddin will resign and YDPA will appoint an interim PM 4. YDPA will appoint a new PM who has majority MPs support. A new budget 2021 also will be tabled by the new appointed PM. Will the market go down? Will it crash? Take profit now or wait? 20/11/2020 7:21 PM OldWiseMan100 Price correction coming as shown in TA chart. RSI at 80% all time high. MACD all time high and about to cross like previous crossing. Volume down 21/11/2020 1:34 PM  DannyArcher Result considered not good, 2 Quarters down. When a family budget is tight and they have to choose mobile internet on their smartphone vs home broadband, the first thing to go is home broadband. With mobile internet gaining in speed, bandwidth and stability, TIME will eventually lose out, maybe not next year or 3 years from now but eventually TIME will have to get out of the home broadband market and be the bandwidth provider for companies like Digi and etc. Not everybody games on their computer or watch high res NetFlix, a good mobile internet is good enough. No future. Sell! Sold mine on 24th Nov as I expected a bad quarter. 27/11/2020 11:46 PM JayC88 That is great, we need weak holders out. Please sell when the price is still good 29/11/2020 9:51 PM doublesunday When we transition from 3G to 4G around 2013, we still using the single-digit Mbps fix line. At that time people said we no longer need fix line internet like streamy as 4G potentially can support up to 100Mbps. Now 5G coming and fix line is at 1Gbps or commonly at 100Mbps. Content on the internet will changes, how people using the internet will change, just like when we were at 3G, no people are watching so much video on their handphone, and from time to time you hear people complain they got charged thousand for their mobile bill, and now people watching, posting so much video to the internet every day thru mobile internet. whereas people start using fix line internet for gaming, streaming of FHD 1080 movie on TV, or download game(game size is getting bigger and bigger). Check out Google Stadia. Check out how big the file is a for 4k movie(around 100G). PS5 model no longer come with a disc drive, mean all game will thru download. Fix line will not die, more and more people will need fix line for their daily media consumption and entertainment. Data don't lie, retail segment for Time up 27% year over year, Maxis fiber up 23% YoY. Time is a good company, seeing its capex is dropping, probably due to no new undersea cable investment, hopefully, management will be kind with dividend. 06/12/2020 1:59 AM DannyArcher @doublesunday I agree, fix line wont die. Just like how PC wont die because more and more people are using laptop over desktop. The problem is, fix line will go the way of desktop PC. It is obvious the time will come, generational shift will guarantee this, how many young people uses fix line over mobile data? how many young people uses a computer over smartphone? The shift is slow but steady. TIME wont go kaput or lose money, well managed company. The question is, growth will be slow, why stay in a company with slow growth when there are so many others with higher growth = higher capital appreciation. 06/12/2020 11:52 AM doublesunday @DannyArcher Glad we both agree Time is a good company lead by good management. I like the CEO Afzar so much, seeing him bring Time from nothing company to Time now a day. Here is his talk at tedtalk 9 years ago, you may take a look https://www.youtube.com/watch?v=GpBbV2elOBE. Wish to talk to him to understand Malaysia internet landscape again. I myself just using my phone as a portable hot spot, but if I observe people around me, most household with more than 2 people will have a fix line. And if i talk to my colleague included fresh graduates, most of them having fix line at their house as well. The only groupp of people don't have fix line is usually young couple who stay on their own, or a people who stay on their own, it is just too luxury to have a fix line if only used by 1 or 2 person right? However my observation is just the current trend, how it going in the future we can do our own estimate, and this is the beauty of investment, time will tell if we are right or wrong. For me, I think in 5 years' time, I don't see the trend people will drop their fixline and move to mobile, and I think the retail business for Time will be gaining ground in the market, as they provide the best product. I think growth is a factor we need to consider when we value a company. For example, if we assume a company going to double its revenue in 3 years, how much PE we will be paid for the company? Tech sector is a high growth sector, as you can see most tech company where investor believe to have high growth in business is now value at 40 PE, and Vitrox at 80. High PE is not a problem if the company able keep up with revenue growth. but if the revenue growth is not meeting the target, the stock will fall. I do have high PE company in my portfolio as well. Come back to Time. How do we evaluate this company? 1. This company is in a duopoly business at Malaysia. 2. Most of its revenue is recurring. 3. It provided around 10% growth in revenue and profit anually. Currently, the market gave PE27. Some investors said it is too expensive, and some investors said the PE not yet justify the company's intrinsic value. Nestle is on PE 58. market not only provided high PE for high growth company, market also give high PE to stable company who can give a consistent earning. I believe there is no best company to invest, as different investors have different goal and risk appetites. 06/12/2020 4:25 PM DannyArcher @doublesunday The headwind is slower population growth, faster and more reliable mobile internet, and the commodifying of bandwidth. Once a product competes on pricing, like palm oil, airasia tickets, computers... that is when growth stops or stagnant. If the only reason a customer chooses your product due to price, then it is time to leave. 06/12/2020 4:47 PM doublesunday @DannyArcher Thanks for the good comment and perspective. I will take this into consideration in my investment, and watch out the margin closely. 06/12/2020 5:05 PM Dakewlest TP by DBS is RM16. https://www.dbs.com.sg/treasures/aics/templatedata/article/recentdevelopment/data/en/DBSV/112020/TDC_MK_11272020.xml# 08/12/2020 2:41 AM aarontan1987 let me put it this way for u guys to ponder about hahahahahaha if it ever declines all the way to 11+ will u still consider holding or averaging down? hahahahahaha 09/12/2020 7:55 PM Dakewlest Aaron, i will wait until next quarter and decide. Normally they will announce dividend next quarter. 09/12/2020 10:49 PM aarontan1987 @dake after dividend how much would it be? RM16.00? or would other holders be selling it to hold cash? 11.835 - 11.860 seems possible based on pure volumetric valuation hahahahahaha i still have this stock in my long term portfolio although i did clear 60% of it while still holding onto only 40% at 10.750 hahahahahaha anytime throwing it to willing buyers hahahahahaha 10/12/2020 4:50 PM Dakewlest Good read. https://www.thestar.com.my/business/business-news/2020/12/10/tdc-fast-forward-journey 10/12/2020 5:28 PM  | |
