OCK - RHBINVEST CALL

OCK Group is testing the MYR0.735 resistance level.
There could be a bullish continuation if this level is breached, with target of MYR0.80 and MYR0.83.
Cut loss at MYR0.695 at a limited downside risk, although key support is at MYR0.66 for longer term traders.

OCK Group (OCK MK, BUY, TP: MYR1.02)
OCK is an emerging towerco play in Malaysia with an ASEAN footprint. The landmark deal with Telenor Myanmar is a major coup and could potentially see a USD15m uplift in lease rentals when the sites are fully commissioned in 2017. BUY with a DCF MYR1.02 TP (from MYR1.06, 44% upside, WACC: 9.4%, TG: 1.5%) which translates into 10.5x FY17F EV/EBITDA, at a discount to the much bigger Indonesian peers for its smaller market cap/stock liquidity. We project a commendable 35% core earnings growth in FY16 (FY15: +49%) on:
1. Steady expansion of its site maintenance segment.
2. Robust 3G/LTE/fiber deployments locally.