GREATER CHINA Sector Consumer Dragon Boat Festival: Consumer services, experiential spending, and lower-tier cities lead growth. INDONESIA Update Vale Indonesia (INCO IJ/HOLD/Rp4,300/Target: Rp4,300) Issuance of new shares to complete the divestment process. MALAYSIA Sector Telecommunications 1Q24 earnings up 14% yoy on the back ...
Malaysian telcos reported a softer quarter, both on revenue and EBITDA. Despite this, OpFCF improved on lower capex spend; CelcomDigi is still tracking well against our FY23 EBITDA forecast (+1.7%). We maintain our Buy recommendation on Maxis and CelcomDigi, where we expect the latter to beat on EBITDA expectations.
A director at Maxis Bhd sold 25,000 shares at 4.060MYR and the significance rating of the trade was 51/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showin...
Malaysian telcos reported a better quarter as ARPU has now inflected after 6 consecutive quarters of decline. As a result, service revenue improved to +2.3% YoY while continued cost cutting and post consolidation led to EBITDA growing ahead.
Maxis Likely To Sign 5G Access Agreement To Support 5G Rollout We expect Maxis to sign the 5G AA with DNB, which may or may not require shareholder approval as it is subject to the terms of the agreement. In the meantime, we see near-term headwinds for the wireless players as there are talks that telcos may be invited to inject equity into DNB as a short-term measure before a potential dual wholesale network rollout in 2024. Maintain HOLD with an unchanged DCF-based target price of RM4.10. The s...
1Q23 Results Within Expectations; Special Interim Dividend From TIME 1Q23 results came in within our expectations except for Axiata (below expectations). In essence, the quarter was characterised by: a) decent service revenue growth of 5% yoy, b) strong fixed-line take-up, c) higher-than-expected finance cost and depreciation from Axiata, and d) special dividend from TIME. After the results announcement, we trimmed 2023-24 net profit by 15% and 8% respectively. Maintain MARKET WEIGHT. Prefer fix...
1Q23: Results In Line; Interim Dividend Disappoints Maxis’ 1Q23 net profit rose 7% yoy and 33% qoq to RM320m. The qoq jump was due to the absence of Prosperity Tax while the yoy better performance was due to the strong postpaid segment. 1Q23 service revenue was flat qoq but rose 4% yoy. Results are in line but the first interim DPS of 4 sen/share (98% payout) is lower than the DPS of 5 sen/share in 2022. Maxis’ roadmap for 5G is the key event to look out for. Maintain HOLD with a higher target p...
Malaysia Plans Dual 5G Network After DNB Achieves 80% Coverage WHAT’S NEW Malaysia decided to roll out 5G via Digital Nasional (DNB) until it reaches 80% coverage by end-23. Thereafter, the governmet agreed that a new entity can establish a second network, as early as Jan-24 (see chart below). In essence, Malaysia will move towards a dual network model (DWN) for its 5G rollout after coverage reaches 80%. According to Commmunciations Minister Fahmi Fadzil, DNB has achieved 57.8% coverage of pop...
4Q22 Results Above Expectation; Special Interim Dividend From TIME 4Q22 results beat our expectations except for Maxis (in line). In essence, the quarter was characterised by: a) muted service revenue growth of 1% yoy, b) strong fixedline take-up, c) better-than-expected cost control, and d) dividend surprises from TIME. After the results announcement, we raised 2023-24 net profit by 2% and 3% respectively. Maintain MARKET WEIGHT. The sector trades at five-year mean 7x EV/EBITDA. Prefer fixed ov...
Telecommunications – Malaysia 5G Uncertainties To Remain Until End-1Q23 The 5G network policy by DNB with added features will be tabled before the Cabinet by end-1Q23. We expect the single wholesale network to remain with potential changes including a secondary equipment provider. Other possibilities include a dual wholesale network or award of 5G spectrum to telcos. Maintain MARKET WEIGHT on the sector. We project 16% yoy sector growth in the absence of the prosperity tax for 2023. TIME offers ...
Q4 was another mixed quarter for the Malaysian telco market with a small improvement in service revenue trends but a slowdown in EBITDA trends. At the operator level, Digi and Maxis posted mixed Q4 results whereas there were generally strong figures at Axiata.
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
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