February 27, 2012

Maxis Berhad - A new line of attack

Stock Name: MAXIS
Company Name: MAXIS BERHAD
Research House: CIMBPrice Call: HOLDTarget Price: 5.70



Target RM5.70

At 99% of our forecast and 97%of market estimates, Maxis's FY11 core net profit was within expectations. Also expected was 8 sen each in final and special DPS. But the operational performance was lacklustre and Maxis is 'retaliating strongly' to regain market share in voice. We maintain our Neutral stance on Maxis as its weak performance and rising competitive risk are offset by its high dividend yield. We trim EPS estimates for its new borrowings but maintain our DCF-based target price on lower capex. Axiata and TM remain our top picks.


Source: CIMB Daybreak February 27, 2012 FULL PDF Report

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