Stock Name: AXIATA
Company Name: AXIATA GROUP BERHAD
OSK Research has maintained a "buy" call on Axiata Group based on its sum-of-parts (SOP) derived value of RM5.60 following strong revenue growth in the company's Idea Cellular.
In a research note today, OSK said Idea's strong results reaffirmed its view on the improved revenue and earnings perspective for the company, despite the rising tariffs due to the massive price-war in 2009-2010.
It noted that Idea continued to benefit from the 20 per cent power tariff hike levied by the Indian government earlier this year for the sustenance of state distribution utilities.
Idea recorded a strong nine per cent quarter-on-quarter growth in revenue to RM3.3 billion for the third quarter on the back of seasonally higher minutes of usage and improved subscribers growth of 6.2 per cent.
Axiata's Indian associate contributes less than 10 per cent to its net earnings and five per cent to OSK's SOP valuation on the stock.
The research house said Axiata remained as an inexpensive regional mobile exposure and therefore was its top regional telecoms pick. -- BERNAMA
Company Name: AXIATA GROUP BERHAD
| Research House: OSK | Price Call: BUY | Target Price: 5.60 |
OSK Research has maintained a "buy" call on Axiata Group based on its sum-of-parts (SOP) derived value of RM5.60 following strong revenue growth in the company's Idea Cellular.
In a research note today, OSK said Idea's strong results reaffirmed its view on the improved revenue and earnings perspective for the company, despite the rising tariffs due to the massive price-war in 2009-2010.
It noted that Idea continued to benefit from the 20 per cent power tariff hike levied by the Indian government earlier this year for the sustenance of state distribution utilities.
Idea recorded a strong nine per cent quarter-on-quarter growth in revenue to RM3.3 billion for the third quarter on the back of seasonally higher minutes of usage and improved subscribers growth of 6.2 per cent.
Axiata's Indian associate contributes less than 10 per cent to its net earnings and five per cent to OSK's SOP valuation on the stock.
The research house said Axiata remained as an inexpensive regional mobile exposure and therefore was its top regional telecoms pick. -- BERNAMA
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