TM - What’s Next For P1?

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: TA

Price Call: BUY

Target Price: 7.42

TM - Acquires Last Piece of the Puzzle

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: TA

Price Call: BUY

Target Price: 7.22

TM - Injects RM350m into P1, mulls LTE offering

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: JF APEX

Price Call: HOLD

Target Price: 6.15

TM - 4QFY13 - Results Review

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: MIDF

Price Call: BUY

Target Price: 6.82

TM - Streamyx users getting the Hype

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: MIDF

Price Call: BUY

Target Price: 6.75

Foothold in Nusajaya

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: TA

Price Call: HOLD

Target Price: 5.76

Affin downgrades TM to 'reduce'

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: AFFIN

Price Call: SELL

Target Price: 5.16

Affin Investment Bank downgraded Telekom Malaysia Bhd to 'reduce' from 'add' and cut its target price to RM5.16 from RM6.04, citing a slower-than-expected reduction in the telco's capital expenditure and slowing net adds for the Internet division going forward.

"All in, we see limited further near-term re-rating catalyst for the stock," the research house said in a note on Wednesday.

The slower-than-expected cut in capital expenditure means that there is limited catalyst for a hike in dividend. Also, Telekom Malaysia may not be able to pay a higher dividend due to its RM2 billion loan obligation due by year end, Affin said.

"Conversely, the latter factor (slowing net adds from Telekom Malaysia's internet division) depicts risk of slowing earnings momentum, and occurring even prior to competition from the Astro-Maxis collaboration," it said.

The voice segment, which contributed up to 37 per cent of Telekom Malaysia's revenue, is also unlikely to see any meaningful recovery, Affin said.

As of 10.58am, the shares were up 0.56 per cent at RM5.40. The benchmark stock index increased 0.69 per cent.-- Reuters

HSBB and dividend potential remains intact

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: MIDF

Price Call: BUY

Target Price: 6.75

Telco - Ready for LTE

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: MIDF

Price Call: BUY

Target Price: 6.75

Telco - 3Q12 Results Roundup

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: MIDF

Price Call: BUY

Target Price: 6.75

9M12 in-line but margin narrowed

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: TA

Price Call: HOLD

Target Price: 5.94

More potential from HSBB regardless of the service provider

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: MIDF

Price Call: BUY

Target Price: 6.75

No snag to growth

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: MIDF

Price Call: BUY

Target Price: 6.75

TM - Buying P1

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: MIDF

Price Call: BUY

Target Price: 6.75

ICT is next growth driver beyond Unifi

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: TA

Price Call: HOLD

Target Price: 6.17

TELEKOM MALAYSIA (FV: RM5.70 - BUY) Corporate News Flash: Super Speed Me

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: OSK

Price Call: BUY

Target Price: 5.70

TM has introduced a new marketing campaign to encourage moreStreamyx users to upgrade to Unifi  aswell as to spur existing Streamxy users to trade-up to a 1Mbps  or faster plan. At a function over theweekend, CEO Dato' Zamzamzairani Mohd Isa said that TM  has allocated RM2.5bn in capex for 2012,mostly  for new businesses  as well as content and applications forUnifi.

OUR TAKE

RM2.5bn capex forFY12. The capex target is consistent with its guidance of RM2.5bn'RM2.6bnpost-FY11 results announcement. We believe this amount  comprises: (i) business-as-usual(BAU) capex of RM1.1bn'RM1.2bn, and (ii) HSBB capex of about RM1.4bn. Note thatHSBB capex is peaking this year as TM has almost attained the 1.3m targetpremises to be passed for 2012 under the agreement with the government.  Management expects  FY12 BAU capex to be slightly higher than the RM1.14bn for FY11 as it is on adrive to replace older assets  as well asintroducing a new billing system. TM spent RM1.4bn for HSBB last year, with itsportion of the spending (net of government subsidy) at RM712m. The remainingsubsidy from the government amounts to some RM140m.

Super Speed Me.Under its latest marketing campaign which is valid until 30 June, TM isoffering existing Streamyx subscribers the option to upgrade to Unifi with the benefitof maintaining their current subscription for 3 months. The same offer appliesto current Streamyx subscribers upgrading to a 1Mbps  of faster plan. The promotion for Streamyx is similar to its reasonably successful'Super Upgrade' promotion offered 2 years ago to lure lower speed users toupgrade to a 1Mbps line which now makes up close to 60% of its  1.7m Streamyx users. We gather from TM thatUnifi subscribers have surpassed 315,000 at end-1QFY12, marking  another record  in terms of subscriber addition and toppingthe 76k net-adds in 4QFY11.  More than30% of the new subscribers come from its existing TM Streamyx user base.

Maintain BUY based onFV of RM5.70. TM remains one of our top picks for exposure to the sector inaddition to Axiata. Key share price re-rating catalysts are: (i) additional capitalmanagement (ii) stronger-than-expected earnings, and (iii) improved Unifi and wholesalecontributions.  

Source: OSK188

Value Investor Research on KLSE Market

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: CIMB

Price Call: BUY

Target Price: 5.76

Target RM5.76

Fibre broadband take-up continued to defy expectations in 1Q12 even though the quarter was punctuated by many holidays. We are also pleased with TM?''s strong focus on collections. We are raising EPS and DCF-based target price for the strong broadband take-up. Though we do not forecast special dividends given the higher capex, it remains a possibility depending on how quickly gearing is brought down with better collections. Still an Outperform and our top pick.

Source: CIMB Daybreak - 04 April 2012, Full PDF Report

Stock Overview - TM - 2 Apr 2012

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: JUPITER

Price Call: BUY

Target Price: 5.62

TM ( 4863 : 5.30 ) : Targeting 5.62

Description

Resistance : 5.62
Support : 5.20

RSI of 71
RSI is rising

STOCHASTIC
It is on an upswing

TREND INDICATOR

Comment
The current upmove is targeting 5.62. A tight stop loss should be placed at 5.20

Trading Strategy
Buy. Stop loss is at 5.20

 Source:Jupiter Securities Research 02 April 2012

Telecommunication - Neutral - 28 March 2012

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: KENANGA

Price Call: BUY

Target Price: 5.52

Stock Name: DIGI
Company Name: DIGI.COM BHD

Research House: KENANGA

Price Call: HOLD

Target Price: 4.15

Stock Name: AXIATA
Company Name: AXIATA GROUP BERHAD

Research House: KENANGA

Price Call: HOLD

Target Price: 5.30

Stock Name: MAXIS
Company Name: MAXIS BERHAD

Research House: KENANGA

Price Call: HOLD

Target Price: 5.80

 We are maintaining our NEUTRAL view on  the Telecommunication sector. While the sectorrisks (i.e. risk of heightened competition, potential inadequate LTE spectrum allocationand spectrum refarming) continue to persist, it will provide a great opportunityto the winners at the end of  the battleand increase their competitive advantages. Competition in the home broadbandsegment is expected to heat up in 1H12 when Maxis launch its FTTH plan in  full scale. We maintain our OUTPERFORM callson TM (TP: RM5.52); while keeping MARKET PERFORM calls on Digi (TP: RM4.15);Axiata (TP: RM5.30); and Maxis (TP: RM5.80). Despite having a NEUTRAL view onthe sector, we believe the sector's healthy EBITDA, decent dividend and strongoperating cash flow will provide a much needed defensiveness required during thevolatile market.  

FY11 resultssnapshot. All the local telco players have posted fairly strong FY11'sresults that were either within or above the street and  our expectations. Going  forward, most  of  the incumbents are expecting to record a midsingle digit annual revenue growth in FY12 while Digi appears to be moreoptimistic by targeting a  mid-to-highsingle digit revenue growth. EBITDA margin-wise, all the telco players areexpecting to record either a flat or lower margin due mainly to the increase inoperating costs and rising  contributionfrom the data segment, where the margin is lower as compared to the traditionalvoice segment. 

2012 industry trends.Post the FY11's results, we observe that the industry is heading towards thefollowing trends: 1) short-to-mid term margin compression as a result of highercontribution from the data segment; 2) aggressive marketing campaigns andpromotions seemed to have started to be reflected in higher MOU (minutes ofusage) but lower ARPM (average revenue per minute) since 3QCY11 and 3) a risein dividend payout. 

Industry outlook.We expect the incumbents to grow by mid-to-high single digit in 2012 with thedata segment continuing to remain in the driver seat. Smartphone penetrationremains low at approximately 20%, which suggests more room to grow for the datasegment. Furthermore, with more attractive data bundle packages, cheaper  smartphone devices and rising popularity of tablets,the growth prospect in the data segment remains bright. 

More heat in the homebroadband segment. TM signed a 10-year collaboration agreement with Maxisin December 2010 to allow the latter's offering of FTTH via its high-speedbroadband network.  Maxis has started thelaunch of its FTTH plan since 2HFY11 in selected areas (i.e. Klang Valley,Penang, and Johor Bahru) and is targeting a full scale launch in 1HFY12. ShouldMaxis tie up with Astro to ride with the latter's IPTV content network, webelieve it will provide a head-tohead competition to TM's UniFi. In addition,the  ability of Maxis' FTTH service toride with the current UniFi set-up box may shorten Maxis' gestation periodhere. 

Foreign shareholdingstands at all-time high. Maxis, Axiata and TM's foreign shareholdings wereat their all-time highs at 29.6%, 28.0% and 20.5% respectively as at end CY11.Digi on the other hand saw its foreign shareholdings at just 12.6% (ex.Telenor) vs 28% in early CY07. Its management is of the view that the lowerforeign shareholding was mainly due to the tight liquidity of the stock despitethe company having completed a share split scheme recently. The high foreignshareholdings in the industry  in generalmeanwhile suggest that the local telecommunication industry actually has astrong defensiveness advantage in the volatile market. 

Bumper dividendpayout. All the telco players have declared FY11 dividends that are withinor higher than the committed amount/ratio stated  in their respective dividend policies. Going forward,Axiata will declare its FY12 dividend based on a revised higher dividend payoutratio of 65% (from a minimum of 30% previously) while Maxis and Digi intend tomaintain their payouts at a minimum 40.0 sen and 17.5 sen dividendrespectively. TM on the other hand is leaving its dividend policy (RM700m or90% of normalised net profits, whichever is higher) unchanged. Still, we are ofthe view that the company could potentially reward its shareholders with more dividendsgiven its strong retained earnings of more than RM1.8b post its recent proposedcapital repayment. We are expecting Maxis, Axiata, Digi and TM to declare 40.0sen, 19.0 sen, 17.6 sen and 49.6 sen in dividends respectively for FY12.

Source: Kenanga

TM: Eyes 400,000 customers for Unifi by year-end

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD

Research House: ECMLIBRA

Price Call: HOLD

Target Price: 4.78

Telekom Malaysia Bhd (TM MK, Hold, TP: RM4.78) aims to hit the 400,000 customer mark for its high-speed broadband service, UniFi, by year-end. Its Executive VP for Consumer, Imri Mokhtar, said the fibre optic broadband service offering high-speed Internet, phone and Internet protocol TV has been growing rapidly, surpassing the 300,000 mark yesterday. "UniFi is now enjoying a take-up rate of over 20% of the premises passed, surpassing our initial estimates and expectations of 8% to 10%. The service is currently available at 79 exchange areas covering over 1.18m premises," he said. (Financial Daily)

Comment: The 300,000 mark that UniFi activated came in as no surprise to us as we have already imputed a net adds of 196k which translates into 432k subscribers for 2012 in our estimates. This is slightly higher than management's target. Based on the current run rate of c.21k per month, UniFi will achieve 489k of subscribers by end 2012. Therefore, our assumption lands on the conservative side as we believe competitors will marginally hinder the HSBB UniFi growth momentum. Reiterate our HOLD recommendation with the target price of RM4.78. (Desmond Chong)

Source: ECM Newz Bits 27 March 2012