Credit Suisse's target price is now RM6-60 with an outperform call.

Unfortunately. I do not have the full report. This statement was quoted in "stocks to watch"- Maxis reported in the weekend edition of The Edge last week.

Probably it is paying dividend every quarter n not paying dividend at one go. Probably for a full year u will get approx RM400-00

This post has been edited by Oracles99: Feb 25 2010, 07:31 PM

The IPO portion was RM4-75

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Added on February 25, 2010, 8:01 pmAssuming every quarter 9c, a full year dividend should be 36 cts .. implying a yield of 7.57% ... 1 year = 4 quarters

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Added on February 25, 2010, 8:07 pmOne analyst commented that Bursa's dividend yield of 2.75% is decent dividend. Surely a dividend yield of 7.57% is more than decent.

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Added on February 25, 2010, 8:26 pmI presumed you read it from the Edge daily n I do not really understand what it means. Most investors expect a total dividend of RM420-00 from FY2010 onwards n certainly not RM400 bonus dividend at one go. Maybe we should email the analyst to find out what he or she means...

This post has been edited by Oracles99: Feb 25 2010, 08:26 PM

The report by Credit Suisse which was posted in this thread may answer this question.

To :mok thye yee
I find your perspective realistic.
I really cannot find any share in the KLSE which offers high growth, high dividend, high EPS (not on currency gains), low debt, low receivables, low PE

Fomerly, it is the tobacco industry. But it is a sunset industry now.

Bursa's PE is sky high compared to other thriving stock exchanges overseas. Yet, I do not see investors dumping Bursa' shares

AK put words into action, if the market or analyst thinks that Astro is only worth RM3-40, they are dead wrong.
I won't be surprise if few years down the road, Maxis would be taken private again when all his overseas telcos are making money.
Ha! Ha! this this is the way to tell the markets n analyst they are dead wrong.
Those who bought Astro at RM3-40 are now laughing their way to the bank.

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Added on March 17, 2010, 10:25 pmMaxis price probably dropped because some bigwigs who got a lot of shares in the IPO are selling.
If u add back those expenses that will never recur again to its profit, its profit did not drop much. After all, IPO expenses won't occur again.

This post has been edited by Oracles99: Mar 17 2010, 10:25 PM

The market on the whole today is no longer like that in the nineties. This is probably because all investors, institutional or retail, can now invest overseas. The internet has made this possible.

I still remember then when the newspapers kept asking why share prices on the KLSE keep moving higher n higher.
And most observers agree that the investing community has no place else the put their money. What a difference it makes today!

As to the idea that share prices move in accordance with PE ratios, I disagree.
Rather share price move in accordance with investor perceptions.

The other issue is there are no hot money coming into the market. The big bull run in 1993 was due to huge foreign funds pouring into the markets of SEA. Where are these hot money now?

I agree. So, now the government is planning to list 2 subsidairies of petronas to pull these investors back

Maybe BP offers better value n upside. But this adventure is only for the brave n bold.

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Added on June 15, 2010, 12:16 amIn the words of John Maynard Keynes, "in the long term, we are all dead". Everybody is playing short term. Holding long term is high risk even for the banking and construction. The market move in cycles. Vincent tan, having disposed off Mutiara Swisscom to Digi, now regreted and tried to re-enter by investing in U-Mobile. For short term speculation, buy the much-hyped Axiata instead.



This post has been edited by Oracles99: Jun 15 2010, 12:17 AM

If you read further down, u will notice that DCF target price is RM4-80 (Discounted Cash Flow method) as it said that maxis is not able to committed itself to paying 50 cents dividend per share. It downgrade Maxis to RM5-38.

But why do u expect all potential investors to believe CIMB after its performance in JCY?

If Maxis hits RM4-80 I will be the first to buy. After all, the telco business is non-cyclical. Of course, in the short term, I do not expect to see it fly. Its business is quite stable. Dividends are paid every quarter.

As to the question of 50 cents dividend, Maxis answered that it depends on AK. It has been reported that AK's telco business in India requires massive investment to build the next generation network. When Maxis would paid extra dividend then depends on when AK needs the money.

Telco business in India is highly competitive. Any telco which fails to upgrade its network would simply not able to sustain its business. Axiata's Indian subsidiary is going to face problems of sustainability.

This post has been edited by Oracles99: Sep 2 2010, 03:21 PM

It depends on when AK wants it. To be sure, u better ask AK



This post has been edited by Oracles99: Nov 30 2010, 08:11 PM

UPDATE 1-Malaysia's Maxis Q3 supported by non-voice revenue
Tue Nov 30, 2010 5:39am EST

* Q3 net profit at 601 mln rgt vs 1.18 bln rgt

* Ebitda recovers to 51.4%; added 554,000 subscribers

* Non-voice revenue presently accounts for 40 pct of total revenue

* Says expect full year Ebitda to be between 49-50 pct

* Declares dividend of 8 sen per share (Adds details, comments)

KUALA LUMPUR, Nov 30 (Reuters) - Malaysia's largest mobile operator Maxis third-quarter profit exceeded consensus estimates on the back of strong non-voice revenue growth.

A year-on-year comparison shows that Maxis' quarterly results were almost half that of 2009. However, this is due to the fact that the company's third-quarter in 2009 included other operations that were stripped away after the company listed in November.

In terms of consensus expectations, Maxis exceeded analyst estimates, surpassing a Thomson I/B/E/S earnings consensus of 555.4 million ringgit ($176.2 million).

Chief executive Sandip Das said the company has done exceedingly well despite sluggish voice revenue.

"Voice revenues have been very, very sluggish," Das said. "The growth of data and broadband have been very strong and we expect strong revenues to continue in the future."

Malaysia's telco market has become increasingly competitive, driving down mobile voice revenue and forcing most Malaysian telcos to focus on the mobile data business to offset the drop.

Das said voice ARPU, or average revenue per user, was holding despite a steady declining trend seen in the industry over the last three years.

Despite diminishing returns from the voice business, Das said there was still room for growth in Malaysia as he expected mobile penetration rate to reach 150 percent. Das said the company's non-voice revenue has increased to account for almost 40 percent of total revenues presently, leading the industry in that category, although it is not growing fast enough to offset shrinkage from the voice business.

Earnings before interest, depreciation and amortisation, or Ebitda, a key benchmark for telcos, recovered to a ratio of 51.4 percent of revenue, which is in line with Maxis' goal to maintain that figure at around 50 percent.

Maxis was also the market leader in net additions, adding 554,000 new customers during the quarter to a total subscriber base of 13.5 million.

MAXIS DELIVERS STELLAR Q4 RESULTS – BEST IN ITS HISTORY  RECORD REVENUE OF RM2.3 BILLION  HIGHEST EVER QUARTERLY EBITDA OF RM1.17 BILLION  STRONG NET PROFIT OF RM610 MILLION

Dividend announcement

The Board of Directors has declared an interim single-tier tax exempt dividend of 8 sen per ordinary share to be paid on 30 March 2011. The entitlement date for the dividend payment is 15 March 2011.

The Board of Directors proposes to recommend for shareholders’ approval at the forthcoming Annual General Meeting a final single-tier tax exempt dividend of 8.0 sen per ordinary share in respect of the financial year ended 31 December 2010, to be paid on a date to be determined.
Maxis delivered on its promise on dividends based on active capital management an

could be
1) stellar 1st quarter results due to be announced on 31 may 11 ?
2) 1st quarter dividend ?

Price drop back again. People taking profit

deleted

This post has been edited by Oracles99: Aug 25 2011, 07:58 PM

MAXIS DELIVERS STRONG PERFORMANCE, POSTING RM1,092 MILLION IN NET PROFIT FOR THE FIRST HALF OF 2011
Continued leading the market with 12.8 million subscriptions
Strong Y-on-Y non-voice revenue growth of 20% driven by internet and data
services: Q2 2011 non-voice revenue now contributes 42.7% of mobile revenue
EBITDA margin for Q2 2011 stood at 51.3%: Better reflection of operating
margin post scale back of low-margin hubbing business carried out in Q1 2011

For the second quarter ended 30 June 2011, Maxis posted improved Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of RM1,106 million, up by 1.5% from RM1,090 million in Q1 2011 on the back of higher revenue and stable margin.
The Company continued to deliver industry-leading EBITDA margin at 51.3%, up 0.2 percentage point from 51.1% in the previous quarter, among the best performing Telcos in the Asean region.
In line with the higher EBITDA, Profit After Tax (PAT) in Q2 2011 was higher at RM552 million compared to RM540 million in the preceding quarter.

The Board of Directors has declared a second interim single-tier tax exempt dividend of 8.0 sen per ordinary share, amounting to RM600 million, to be paid on 30 September 2011.

Axiata's Indonesian market is also experiencing the shift from voice to data.
It means that its most lucrative market is peaking soon. If most of its overseas markets are starting to experience this inevitable shift, probably its share price have peaked.

Maxis would probably see increase in profits due to 1) effective tax rate half of the statutory rate - incentive given by government to all telcos 2) Roughly RM200 million per year income paid by UMobile for networksharing.

Institutional investors does not like borrowing to paid special dividends. Probably would not fall back to the RM5-40 range even though not much upside.

Those who are still holding lots of Maxis from IPO, dividends they got far exceeded the FD rate. RM400 annual dividend for every 1000 shares held. And no capital loss.

"non-voice revenue made up 43.5% of Maxis’ total mobile services revenue" - probably the highest among telcos n would act to mitigate falling voice revenue in the telco sector

This post has been edited by Oracles99: Feb 25 2012, 07:50 PM

If I am not wrong the tax discount given to telcos is to compensate for the sales tax absorbed by them. By the time this incentive ends by 2013, probably telcos would be collecting the sales tax from consumers n would no longer absorb it.

As to the drop in revenue, this is a sign of a mature market. Other players are also catching up e.g. UMobile having sign networking sharing agreement with Maxis is an up and coming player. Its broadband in KL is the fastest among telcos n with the partnership it has 85% network coverage. Watch for its IPO this year. I personally have used Celcom n Digi broadband which are disappointing n am now using UMobile instead.

This post has been edited by Oracles99: Feb 27 2012, 08:06 PM