03-07-2013, 08:49 PM
Positive report by Lim & Tan from remisiers.org. But do take note the point in red..
Nera Tel one of our top picks in the mid-cap space retested its 2013 high yesterday at 69 cents before closing at 67.5 cents on a higher than average 3mln shares traded.
The stock has risen 9% in 2 days on optimism that its customers Norway’s Telenor and Ooredoo (formerly known as Qatar Telecom), the recently announced winners of one of 2 telecom license in Myanmar means increased business opportunities for the company.
According to Nera’s management, while they have supplied Telenor and Ooredoo in the past, they would still have to go through official bidding processes.
But both Telenor and Ooredoo have 9 months from Sept’13 to start operations and they are targeting to cover 75% of Myanmar with voice services and 50% with data services within the next 5 years. Ooredoo is targeting to spend US$15bln to reach 90% of Myanmar’s population within 2 years.
This suggests that they will need a lot of support from their existing supplier base such as Nera Tel.
Nera has already began deploying payment solution terminals for the biggest banks operating in Myanmar and their prior experience with operating in frontier economies such as Afganistan and Pakistan would also help them set up operation in Myanmar.
The above suggests continued potential robust order wins ahead.
While the stock has done well, being one of the few to be retesting its 2013 highs, we continue to like it as its yield of 6% and forward PE of 10x against growth of 20% remains attractive.
Nera Tel one of our top picks in the mid-cap space retested its 2013 high yesterday at 69 cents before closing at 67.5 cents on a higher than average 3mln shares traded.
The stock has risen 9% in 2 days on optimism that its customers Norway’s Telenor and Ooredoo (formerly known as Qatar Telecom), the recently announced winners of one of 2 telecom license in Myanmar means increased business opportunities for the company.
According to Nera’s management, while they have supplied Telenor and Ooredoo in the past, they would still have to go through official bidding processes.
But both Telenor and Ooredoo have 9 months from Sept’13 to start operations and they are targeting to cover 75% of Myanmar with voice services and 50% with data services within the next 5 years. Ooredoo is targeting to spend US$15bln to reach 90% of Myanmar’s population within 2 years.
This suggests that they will need a lot of support from their existing supplier base such as Nera Tel.
Nera has already began deploying payment solution terminals for the biggest banks operating in Myanmar and their prior experience with operating in frontier economies such as Afganistan and Pakistan would also help them set up operation in Myanmar.
The above suggests continued potential robust order wins ahead.
While the stock has done well, being one of the few to be retesting its 2013 highs, we continue to like it as its yield of 6% and forward PE of 10x against growth of 20% remains attractive.
