Axiata move bcoz of TM selling to foreign ?

Heard that Axiata plan for special dividend...is it true ?

TM, Axiata buck cautious market

KUALA LUMPUR: Shares of TELEKOM MALAYSIA BHD [] and Axiata Group Bhd bucked the weaker market on Wednesday, July 27 on investors’ expectations of dividends from TM after it disposed on its remaining Axiata shares.

http://www.theedgemalaysia.com/business/19...ous-market.html

Axiata to be net cash from next year, says Maybank IB

KUALA LUMPUR: Maybank IB Research has raised its sum-of-parts based target price for Axiata Group Bhd to RM5.80 from RM5.60 while maintaining its Buy call on the stock, and said it expects Axiata to be net cash from next year onwards.

URL: http://www.theedgemalaysia.com/business/19...maybank-ib.html

Axiata is okay compared to others like Pchem...

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Added on August 5, 2011, 4:08 pm2nd highest in volume trade 38m....
amazing buy & sell Q

This post has been edited by nasni: Aug 5 2011, 04:08 PM

looks like axiata and TM can hold the waves up till now .... Could it be the rumours of special dividen from TM after diposing axiata shares playing the effects ?

I suggest this counter is good for our volatile market at the moment.

keep an eye this counter

Congrats to those who made it today.


i did not pay attention (my only green counter), .. it's down to 4.52 and on opening made an amazing recovery, closing at 4.94

i'm okay cos my abp is 4.77 and 4.80 (2 diff a/c), guess it's okay for now.

dispose few sets during recent high (before the current plunge) so still holding to cash...


Great to those intra day traders too......

This post has been edited by nasni: Aug 9 2011, 06:12 PM

KUALA LUMPUR: OSK Research is upgrading TM to a BUY with a fair value of RM4.80 from its last close of RM4.01.

The research house said on Wednesday, Aug 17 the upgrade was due to its more cautious house view on the broader market and TM’s defensive attribute.

Other positive factors were the strong traction for TM’s high speed broadband service and also the dividend upside potential.

“TM’s 1HFY11 results, due to be announced on 24 Aug should hold little surprises with the key highlight being the strong growth of Unifi as the service expands to new areas,” it said.

OSK Research said it raised its FY11-13 forecasts to build-in the stronger than expected growth for Unifi and incorporating bigger contribution from its wholesale business from 4Q11.

“There is over 20% upside to our revised FV of RM4.80 (6x FY12 EV/EBITDA) which now integrates a potential special DPS of 13sen/share. TM is our other top telco pick aside from Axiata,” it said.

Looks like TM might give us a surprise. For long term defensive investor, you guys might want to get this in your portfolio.

This post has been edited by javelin819: Aug 17 2011, 02:53 PM

For once i agreed with OSK when it reported Axiata as one of defensive stocks.

Even thou the price scaled down to 4.52 on Aug 9th (lucky to those who accumulated) but it bounce back to show it's resiliency.

it's hovering around 5.00

not bad for a telco which has regional exposure, as compared to Maxis where regional exposure was taken out prior to relisting (and analyst commented there's not much meat in them).

KUALA LUMPUR: Axiata Group Bhd's net profit rose 14.94% to RM663.05 million for the second quarter ended June 30, 2011 from RM576.82 million a year ago, mainly due to higher contribution from XL, Idea and Multinet, as well as lower depreciation, amortisation and impairment charges.

It said on Tuesday, Aug 23 revenue rose to RM4.05 billion from RM3.85 billion. Earnings per share were 8.0 sen compared with 7.0 sen. Net assets per share was RM2.25. It declared an interim tax exempt dividend of 4.0 sen per share for FY ending Dec 31, 2011.

However, for the six months ended June 30, Axiata’s net profit fell 19% to RM1.21 billion from RM1.49 billion in the previous corresponding period. Revenue increased by 4.2% to RM7.99 billion from RM7.66 billion.

Reviewing its results, Axiata said the improved revenue was mainly due to higher contribution from Robi, Dialog, XL and Celcom.

It said Robi’s revenue grew by 20.4% mainly due to increase in prepaid usage and 33.7% increase in prepaid revenue generating subscriber base.

Dialog revenue grew 9.4% mainly from increase in interconnect and data revenue, both increased by more than 100%, it said.

XL’s revenue growth was mainly resulted from increase in subscriber base and outgoing SMS by 13.6% and 54.6% respectively, while Celcom revenue grew by 2.7% driven by postpaid and broadband revenue growth of 12.1% and 28.7% respectively, it said.

Axiata said revenue of market leader in Sri Lanka, Dialog, grew by 10.0% contributed from higher prepaid, postpaid and interconnect revenue which increased by 2.7%, 8.4% and more than 100% respectively’

Operating costs increased by 7.7% to RM4.49 billion from RM4.18billion in 1H’10, mainly driven by Celcom, XL and Robi arising mainly from higher network related costs.

Other operating income of the group decreased by 90.5% to RM35.7 million in 1H11 from RM374.7 million in 1H10, due to the one-off gain on disposal of shares in XL of RM337.9 million recorded in 1H10, it said.

Axiata said it recorded lower net finance costs of RM199.7 million in 1H11 as compared to RM284.1 million in 1H10 as a result of reduction of overall debt position at group level.

Meanwhile, average exchange rates in 1H11 of countries and group remained relatively stable against US dollars and ringgit, it said.

Axiata said the group recorded net foreign exchange gains of RM19.5 million in 1H11 as compared to gains of RM2.6 million in 1H10.

The company’s president and group chief executive officer Datuk Seri Jamaludin Ibrahim said difficult operating conditions such as softening markets and the strengthening of the ringgit against most other currencies had continued in the second quarter of the year.

He said the latter had particularly affected Axiata’s operations in Bangladesh.

Despite these factors, he said performance from most operating companies had held firm, adding that XL and Dialog in particular, had performed well against market.

“We have also seen good data performance, from Celcom and XL, which has mitigated the slower growth. Concurrently, the demand for data is growing and the challenges of voice and sms data substitution is accelerating especially in our more mature markets.

“To alleviate this, the group has continued to invest in data initiatives in order to gear up our network which has seen short term pressure in our performance.

“We are confident that despite the short term pressure seen in this quarter’s results, we will be well poised to capitalise on new revenue opportunities, especially in the data business in the longer term,” he said.

I am always bullish on AXIATA...
but last year result was pulled back by the capital readjustment of their investment in IDEA in India based on the share price. With the recent drop in Indian share, but IDEA had gone against the trend and moved from the RS 65 to RS 93 if the price hold to this level until end of the year than they will have to make a huge upward adjustment...

KUALA LUMPUR: TELEKOM MALAYSIA BHD []’s earnings rose 2.3% to RM127.24 million in the second quarter ended June 30, 2011 from RM124.38 million a year ago, underpinned by its Internet, multimedia, data services.

TM said on Wednesday, Aug 24 revenue increased by 3.8% to RM2.23 billion from RM2.15 billion while its earnings per share were 3.60 sen versus 3.50 sen. It declared dividend of 9.80 sen compared with 13 sen a year ago.

The higher revenue, it said, was mainly due to higher revenue from Internet and multimedia, data services and other telecommunications related services. These services helped mitigate the impact of lower revenue from voice and non-telecommunications related services.

“Internet and multimedia services registered higher revenue by 21.1% to RM487.9 million in the current year quarter arising from increased broadband and UniFi customers to 1.72 million and 109,019 respectively in the current quarter from 1.54 million and 4,051 in the corresponding quarter 2010,” it said.

TM said data revenue increased by 7.1% to RM455.0 million from RM424.9 million due to demand for higher bandwidth services.

“Operating profit before finance cost of RM237.5 million increased by 14.5% from RM207.5 million recorded in the same quarter last year largely attributed to higher revenue and other operating income,” it said.

Group profit after tax and non-controlling interests (PATAMI) increased by 2.3% to RM127.2 million as compared to RM124.4 million in the corresponding quarter in 2010. This was attributed to higher revenue, lower net finance cost, net of higher tax charge.

Look like the market don't think AXIATA is performing good enough so it closed lower 0.13

Investors thinking it is going to pay a big dividend have their hopes dashed. Growth means less dividends. Being in several markets carries with it foreign exchange risk which can eat into its profits.

1)high competition business,company facing pressure in profit margin....
2)I suspect they understate their depreciation cost too..company like this always mention EBITDA, EBITDA & EBITDA.
3)Capital Intensive business due to business nature.
4)Return of equity will stay around 8% -13% within these years.it means you earn normal return in the long run...
5)the amount of money they retain for growth purpose doesn't improve much the return of equity..but instead they forced to do sp that to stay in the industry.

if someone want to buy and hold (long term investment) this stock, be prepared to earn a "normal return" ..

just my view

This post has been edited by foofoosasa: Aug 24 2011, 09:58 PM

Buy Q at 4.85 is fully loaded.....i hope this is true to be realised

so we'll see how it goes today......

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Added on August 25, 2011, 8:09 amthen again if u track this counter from early last year when price was somewhere around 3.00, many made great gains along the way.

I dunno at current price if it's fully valued?

at these times of uncertainty and volatility i personally categorise it under defensive..... and not many counter could be a great peformer by year end when KLCI's trend is quite evasive.... my opinion....

This post has been edited by nasni: Aug 25 2011, 08:09 AM

Actually Axiata is doing quite well this year. With 16% net profit increases this quater compared to other telco stocks. We cannot complain.

i did not expect they are giving dividend this year again.

Hence 4c deviden is a bonus to Axiata Holders.

Axiata is top choice among telco....period.

hi, my view only apply to those who really hold for long term ( more than 3 years).
I am not surprise where the share price going, market always willing to pay more for stock like this because it is "famous".
that remind me exactly same back in 2007 where a telecommunication stock listed at somewhere priced around $ 9 dollar... which my valuation around 3 dollar. eventually the stock fall to around 3 dollar and still never recovered.
"In the short run , stock price like a voting machine.in the long run ,price will follow value in the long run like a weighting machine"...

so my view is just sell it if think it is overvalued, don't try to be too smart buy and hold for too long, sometimes buy and hold for a wrong stock can be much much more costly just because you think it is defensive.If I am trader, I will really like stock like this..a lot of waterfish investor pretend to be long term holder.

But the way this company doing the right things by not giving dividend...

again my view is only apply to those want to sleep without worry for 5 years who invested in this stock.

This post has been edited by foofoosasa: Aug 25 2011, 10:40 AM

As for now... sell out... 4% down
why?
What wrong?
I am a bit worried here

hi rosdi,
my advice/view doesn't apply to trader.so what I mentioned above is meaningless for you.
I don't know where the stock price will be going,as I never predict where the share price will go tomorrow or next week and give less concern to market sentiment.what I can do is to stick my value estimation.invest it at great margin of safety.my investment strategy is very "apek" and prudent.
you should ask other TA expert instead of me. (but the way I assume you're one of the TA expert too.)

This post has been edited by foofoosasa: Aug 25 2011, 11:42 AM