Stock Name: AXIATA
Company Name: AXIATA GROUP BERHAD
Research House: HWANGDBS
KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) is fine tuning its forecasts for Axiata Group and it is mantaining a Hold call on Axiata at RM3.86 with a 12-months target price of RM4.20 from a previous RM3.90.
"In reviewing our forecasts, we raise Excelcomindo's FY10F net income by 17% and FY11F by 19%. This led to 5% and 3% upgrade for Axiata's group net income respectively. Hence, sum-of-part TP is raised to RM4.20, but HOLD call is maintained," it said on Monday, March 15.
Celcom to continue gaining share, driven by innovative product launches as well as more handset and broadband bundling. Also, it continues to focus on its strength in the Blackberry segment (said to be the largest seller in Southeast Asia) while Digi plans to launch its maiden iPhones soon.
India remains our key concern in light of price wars. Call tariff had battered down to <5 sen a minute with SMS as low as seven sen each. An industry consolidation may see Axiata pumping in more funds (like it did with the Spice-IDEA Cellular merger).
"Maintain HOLD. Lacking in near term catalyst while India remains an overhanging issue, we maintain our HOLD call on Axiata. It trades at expensive 19 times FY10F PE and 7 times EV/EBITDA multiples vs. 13 times and 7 times respectively of regional telco, SingTel's," it said.
Company Name: AXIATA GROUP BERHAD
Research House: HWANGDBS
KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) is fine tuning its forecasts for Axiata Group and it is mantaining a Hold call on Axiata at RM3.86 with a 12-months target price of RM4.20 from a previous RM3.90.
"In reviewing our forecasts, we raise Excelcomindo's FY10F net income by 17% and FY11F by 19%. This led to 5% and 3% upgrade for Axiata's group net income respectively. Hence, sum-of-part TP is raised to RM4.20, but HOLD call is maintained," it said on Monday, March 15.
Celcom to continue gaining share, driven by innovative product launches as well as more handset and broadband bundling. Also, it continues to focus on its strength in the Blackberry segment (said to be the largest seller in Southeast Asia) while Digi plans to launch its maiden iPhones soon.
India remains our key concern in light of price wars. Call tariff had battered down to <5 sen a minute with SMS as low as seven sen each. An industry consolidation may see Axiata pumping in more funds (like it did with the Spice-IDEA Cellular merger).
"Maintain HOLD. Lacking in near term catalyst while India remains an overhanging issue, we maintain our HOLD call on Axiata. It trades at expensive 19 times FY10F PE and 7 times EV/EBITDA multiples vs. 13 times and 7 times respectively of regional telco, SingTel's," it said.
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