OCK ... Jan13

Being the largest first-tier telecommunication network service provider in Malaysia, OCK Group Bhd is expected to benefit from the spillover effect of the 2.6 GHz spectrum band allocation as telcos firm up their plans in the first and second quarter 2013.

Among the eight telco service providers who were granted the spectrum allocation by the Malaysian Communication and Multimedia Commission (MCMC), all are OCK's existing clients except REDTone Marketing Sdn Bhd and newcomer Puncak Semangat Sdn Bhd. DiGi.Com Bhd has awarded the testing and rollout work of its pilot sites to OCK.

Some telco players have not come out with solid plans and we will know more clearly what their plans are in the first and second quarter of 2013. OCK was working with their vendors like Huawei for more job opportunities.

There are two scopes of opportunities for OCK which are service and equipment.

The Network Facility Provider (NFP) licence OCK obtained from MCMC allows it to build and lease telecommunication facilities to telcos. It built 40 telecommunication sites last year and plans to build another 150 in 2013. A budget of RM50mil has been set aside for the expansion, which will funded through financing.

Its gearing as at Sept 30, 2012 is 0.75 times but the number went up due to its acquisition of a factory in Hicom Glenmarie Industrial Park for RM14.3mil in December 2012.

Estimated the NFP leasing business to contribute 5% to 10% to the group's total revenue going forward.