February 21, 2012

CIMB: Axiata Group - Takeaways from Dialog's 4Q11 conference call

Stock Name: AXIATA
Company Name: AXIATA GROUP BERHAD
Research House: CIMBPrice Call: BUYTarget Price: 5.79



AxiataGroup - Takeaways from Dialog's 4Q11 conferencecall

Target RM5.79

We believe that Dialog, Axiata's Sri Lankan unit, willcontinue to benefit from benign competition. From the 4Q11 conference call,we gather that margins may surprise on the upside due to greater scaleand low inflation. We also think it can raise dividend payout in FY12.We reiterate our Outperform on call on Axiata (SOP-based target price)given the potential catalysts such as a higher dividend payout. Axiataremains one of our top telco picks in the region.

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