February 27, 2012

Telekom Malaysia - Dividends galore

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD
Research House: CIMBPrice Call: BUYTarget Price: 5.65



Target RM5.65

TM's FY11 core net profit beat our estimate by 9% on the back of lower effective tax but fell 6% short of consensus. It pulled off a higher-than- expected capital repayment, raised its FY12 revenue growth guidance closer to our estimates but lowered EBITDA margin guidance. We think that TM's growth guidance is conservative and raise our DCF-based target price and EPS estimates for higher Unifi projections and tax incentive despite the lower margin guidance. TM remains an Outperform and one of our top Malaysian telco picks.

Source: CIMB Daybreak February 27, 2012 FULL PDF Report

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