The 4qtr saw improvement from the past quarters - an indication of better times ahead. If you take the financial yr as a whole, then u won't see improvement since the past qtr results declined. I think that is what the press reported.

maxis declare 5cts dividend.

Never mind. As long as we can make money. I would be more worried if they keep on borrowing to pay dividends. They say they want to maintain their structure with optimum equity n debt. Without taking this dividend into account, those who still hold on to their shares since IPO would see their cost at $2.55. Not that bad. Other shares pay even less dividend but no one complained. Bear in mind, they paid dividend 5 times in a year n not 4 times.

This post has been edited by Oracles99: Jul 15 2015, 02:10 PM

$5 is near IPO price of $4.75. Do u think it is possible?

Most of the shares are overpriced if u look purely at EPS angle. This is also how the CEO of I Capital look at KLSE n comes out with a target of 1300.

Spectrum re-farming exercise – A threat to the big cap telcos? MCMC has earlier highlighted that the purpose for refarming the spectrums are to address the network congestion issue faced by the telecom as well as to narrow the gap between the big boys and smaller players. While the authority’s intention appears negative to the big cap telecom players (especially to Maxis and Celcom) at the first glance, the actual operational impact may not be severe in our view. The reasons being are: (i) Cellcos are transmitting their legacy network to SingleRAN, which allow operators to provide seamless mobile services under decent spectrums with single network, (ii) the authority is expected to ensure operators minimize network disruption during the re-farming period, thus suggesting that sudden surge in churn rate is unlikely, and (iii) new network technology may emerge to provide better spectrum management. All in, we believe that the big cap telecom players could potentially surrender some spectrums to the authority, but the impact on earnings will very much depend on the auction results should they decide to participate. Potential beneficiaries for these spectrums re-farming exercise will be Digi, U Mobile and some other smaller players given their relatively lesser spectrum in these frequencies.
Statement falling short. The short statement above, however, did not elaborate further on the details of the plan, which include: (i) spectrums involved (i.e. fixed/mobile spectrums and its frequencies), (ii) bidding process, (iii) timeframe, and (iv) bidder’s qualifications. The statement has surprised the market negatively which led to the local celcos’ share prices plunging by 4% – 8%. TM’s share price, meanwhile, was relatively stable but still lower by nearly 2% yesterday. Potential winner and loser. All the telco operators will be on the losing end should the authority impose a tender scheme under the upcoming spectrum re-farming exercise. Operators are expected to allocate additional capex if they intend to participate in the spectrum auction and thus, may leave operators no choice but to revise subscription plans in the future. On the fund raising capability front, unlike TM and Digi, both Maxis and Axiata’s latest gearing are close to their respective optimal capital structure, suggesting limited room to gear ahead. As a result, we do not discount that operators may consider raising fund through assets’ rationalisation or lowering their respective dividend payout to preserve cash moving forward. Sector de-rating may be underway. Although the government has yet to unveil the details, we believe the message could deliver a de-rating element to the sector in view of the hefty funds required ahead. While we are maintaining all our telco companies’ earnings forecast for now, pending their upcoming 4QCY15 result review, we have scaled down our fairly neutral view on the sector players’ prospect.

Source: Kenanga Research - 29 Jan 2016

I suspect small investors have been taken for a wild ride. Among the telcos, Maxis has the least foreign shareholdings. When the fire sales (including local funds which tried to push the price lower n lower) stops, those same funds will push up the price again. Just look at Axiata. If they bid the spectrum up to 10b, there is probably not much profit anymore. Small dividends, low share price, inability to extend their network to rural areas etc will impact ASN, Tabung haji, EPF etc. In the end, it is all blood.

What those analyst said.

1) Maxis n Axiata's gearing implies that they have problems funding the spectrum auction
- If u look at maxis record after its relisting, it has on one occasion issued a private placement of new shares to some unidentified parties collecting proceeds of RM2.3 billion. (This is the cost likely to be paid if we follow Thailand's auctioning process). Incidentally, AK himself is flush with cash after selling his power assets to 1MDB for RM8.5 billion.
So funding is not a problem for both Maxis n Axiata.

2) Maxis n Axiata would lose some of their 900MHz spectrum n are considered losers.
- The government has said they would like to see an equitable allocation of spectrum to make the playing field more level. I think this is not too bad after all. Everyone has some share.

3) Telcos would have their ability to pay dividends capped.
- The golden days of generous dividends have probably passed as our market has already matured. But I believe they are able to pay a decent dividend. The cost of spectrum would partially be passed to consumers.

- The days of irrational pricing of their products by some aspiring telcos would end i.e. the price war would end.

So, it is not the end of the world for telcos.

From TheEdge.

Spectrum allocation goes to Celcom, Maxis, Digi, UMobile. -Spectrum allocation in the 900MHz n 1800MHZ will be reallocated among the 4 players.