Stock Name: AXIATA
Company Name: AXIATA GROUP BERHAD
Research House: HWANGDBS
Company Name: AXIATA GROUP BERHAD
Research House: HWANGDBS
Axiata Group Bhd's revenue for financial year 2011 is likely to grow by 10 per cent while the earnings before interest, taxes, depreciation and amortisation (EBITDA) margin will remain stable at 49 per cent, says HwangDBS Vickers Research Sdn Bhd.
The target was based on Axiata's 2011 plan to grow its revenue from Robi in Bangladesh, Dialog in Sri Lanka, XL in Indonesia and Celcom in Malaysia, it said in a research note today.
Except for Dialog, HwangDBS said the other subsidiaries are targeted to perform ahead of the industry.
"Celcom and XL will continue to grow mobile data services while remaining cost efficient.
"Robi will work to improve service quality and offerings,while Dialog focuses on growing its data services revenue and managing cost efficiencies," it said.
HwangDBS is also projecting a 35 per cent payout ratio as it believes Axiata will be able to pay more dividends, given an expected more than sufficient free cash flows over the next two to three years.
Axiata has a dividend policy of a minimum 30 per cent payout ratio, translating to about a two per cent yield.
HwangDBS has maintained a "buy" call on Axiata with a sum-of-parts (SOP) derived target price of RM5.60. -- Bernama
The target was based on Axiata's 2011 plan to grow its revenue from Robi in Bangladesh, Dialog in Sri Lanka, XL in Indonesia and Celcom in Malaysia, it said in a research note today.
Except for Dialog, HwangDBS said the other subsidiaries are targeted to perform ahead of the industry.
"Celcom and XL will continue to grow mobile data services while remaining cost efficient.
"Robi will work to improve service quality and offerings,while Dialog focuses on growing its data services revenue and managing cost efficiencies," it said.
HwangDBS is also projecting a 35 per cent payout ratio as it believes Axiata will be able to pay more dividends, given an expected more than sufficient free cash flows over the next two to three years.
Axiata has a dividend policy of a minimum 30 per cent payout ratio, translating to about a two per cent yield.
HwangDBS has maintained a "buy" call on Axiata with a sum-of-parts (SOP) derived target price of RM5.60. -- Bernama
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