P1 may see results recovery earlier than expected

KUCHING: Green Packet Bhd (Green Packet) via its subsidiary Packet One Networks Malaysia Sdn Bhd (P1), is expected to see its results returning to the black earlier than expected, given a stronger subscriber base due to growing interest in the wireless broadband segment.

CAPTURING WIMAX MARKET: OSK says Green Packet via its subsidiary P1, is slated towards securing a bigger share of the wireless broadband segment from its recently-launched WENB

Currently, the country’s largest WiMAX (worldwide interoperability for microwave access) operator has a 20 per cent share of customers from the wireless broadband segment from its total subscriber base.

Further, it is slated towards securing a bigger share of the segment from its recently-launched WiMAX embedded notebooks (WENB).

At a recent promotion event held by P1 at Berjaya Times Square, researchers from OSK Research Sdn Bhd (OSK Research) observed laptops of fered were actually purchased from vendors at a slight discount to their retail price range from RM1,349 (for the netbooks) to RM2,499 (notebooks).

Cumulatively, however, such subsidies would only cost the company some RM55,000 for 50 laptops, a far cry from its annual advertising and promotional budget of RM10 million to RM15 million.

Moreover, OSK Research believed that such crowd pulling events were vital to drum up interest on the WEN B, and to attract the more technologically savvy mobile Internet users. It was estimated that the event had pulled in more than 500 shoppers, a significant number when compared to the concentration of people at one particular place at one time.

In their visits to several computer outlets, OSK Research found out that most retailers had already placed orders for the WENBs and expected these models to be on their shelves by next month.

Overall, the research house was more upbeat on Green Packet’s prospects on the belief that WEN B would gather popularity as major retailers had begun to stock up on the models. As such, it maintained a target price per share of RM1.30 on the company.



by Borneo Post