Stock Name: AXIATA
Company Name: AXIATA GROUP BERHAD
Research House: OSK
Company Name: AXIATA GROUP BERHAD
Research House: OSK
OSK Research has trimmed its financial year 2011/2012 forecast for Axiata Group by five-six per cent, driven mainly by the lower earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin assumptions for Celcom.
"The revision entails a reduction in the EBITDA margin assumptions for Celcom to 41-43 per cent from 43-44 per cent previously on higher handset sunsidies, low group of income and associate contributions," OSK said in a research note today.
It said Axiata has targeted to progressively raise its dividend payout (currently 30 per cent) over time but did not offer further clarity on the timeline for a more definitive capital management initiative.
"Given that we do not expect the group to engage in a major merger and acquisition as the its coffers are rapidly building up, we do not rule out a return of surplus cash over the longer term," OSK said. -- Bernama
"The revision entails a reduction in the EBITDA margin assumptions for Celcom to 41-43 per cent from 43-44 per cent previously on higher handset sunsidies, low group of income and associate contributions," OSK said in a research note today.
It said Axiata has targeted to progressively raise its dividend payout (currently 30 per cent) over time but did not offer further clarity on the timeline for a more definitive capital management initiative.
"Given that we do not expect the group to engage in a major merger and acquisition as the its coffers are rapidly building up, we do not rule out a return of surplus cash over the longer term," OSK said. -- Bernama
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