Company Name: MAXIS BERHAD
| Research House: HLG | Price Call: HOLD | Target Price: 5.51 |
Maxis "Home" Run?
'''' Finally, Maxis has officially launched home fibre internet which only bundles high speed broadband (HSBB) and voice telephony. Partnership with FetchTV allows Maxis to include IPTV in future, completing its offering as a triple play product.
'''' We opined that Maxis has lost focused on their core mobile business over HSBB. This has resulted in poor 1H11 profitability due to depressing net adds and high churn rate as subscribers turn to cheaper alternatives (DiGi and Umobile).
'''' As for HSBB, Maxis' pricing is highest (RM4.27/GB) among all, not to mention that the current product offering is inferior (without IPTV) than peers. Thus, we do not think that Maxis is able to sustain premium pricing.
'''' We update our estimates to reflect contribution from "home" segment and tuning down in view of disappointing net adds and the economic slowdown. Post earnings revision DDM-derived TP cut to RM5.39 from RM5.51.
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Mah Sing (BUY)
Site visit to M Residence @ Rawang
'''' We recently paid a site visit to Rawang to view the site for Mah Sing's newly-announced M Residence @Rawang, and also took the opportunity to view the nearby amenities and developments.
'''' We came away feeling more comfortable with the prospects of the project, given good connectivity and mature set of amenities nearby, including a new Jusco outlet.'' GDV for Phase 1 is ~RM400m.
'''' We have slightly raised earnings forecast by 5-10% for FY12-13, and TP from RM2.05 to RM2.14.'' Maintain BUY ''
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KLCI: Headlines driven market
'''' We believe global markets will remain volatile for a while, taking cue from headlines mainly from the Euro-zones debt crisis development. Hence, we continue to advocate risk-averse investors to sell into strength or trim positions on weakening daily indicators. From the weekly chart, tough resistance levels are 1469 (15-w SMA) and 1494 (20-w SMA) while supports are 1433 (10-w SMA and uptrend line) and 1413 (30-d SMA ' daily chart).
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Dow: Range bound trade''
'''' We reiterate that the Dow will continue to trade range-bound within the box. Major resistance levels are 11600-11800 while crucial supports are 10800-11000 pts. A break below 10800 will drive the index lower towards 10400-10600 levels.
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