Excel – http://1drv.ms/1kL323M
– Fair values:
– Absolute EY%: Buy below 6.67, sell above 8.17 (MOS: 17.60%)
– I am looking for 23% MOS though.
– AXIATA is currently undervalued at 6.73 (6 May 2014)
– I expect Celcom’s earnings to remain stable going forward amid rational competition. XL meanwhile will have to absorb Axis’ losses in the initial years post-merger. The potentially value-accretive tower spin-off exercise is not close to being completed. Besides, AXIATA is still highly leveraged. CROIC and ROIC are just stable, but not improving significantly.
– New acquisition activities are expected, such as Viom Networks Ltd in India. Thus, more funding and gearing will be needed.
– As of now, I do not see new growth catalysts for Axiata in the near term. I won’t accumulate AXIATA in the near term.
Latest Financial – Annual Report 2013 (6 May 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1614929
At the time of writing, I owned shares of AXIATA.