AXIATA – Fundamental Analysis (20 May 2015)

AXIATA Analysis:-

Excel – http://1drv.ms/1Bb9RU9

Notes – http://tinyurl.com/q95yes3

My View:-

  • Valuation:
    • Absolute EY%:
      • Trailing:
        • FY14 (EPS: 0.272) – Fair value 6.24 (Fair Value Uncertainty: HIGH)
        • R4Q (EPS: 0.263) – Fair value 6.02 (Fair Value Uncertainty: VERY HIGH)
      • Forward:
        • FY15 (EPS: 0.295) – Fair value 6.77 (Fair Value Uncertainty: HIGH)
        • FY16 (EPS: 0.317) – Fair value 7.26 (Fair Value Uncertainty: HIGH)
      • EPS applied to reach the current stock price (6.75): 0.295
  • Management alluded to a potentially weak 1Q15 for Celcom, as
    • The IT issues have still not been fully resolved and,
    • There is likely some spill-over impact from the East Coast floods.
  • High challenges ahead as the results weren’t good in FY15 Q1.
    • Celcom recorded lower earnings due to higher operation and network costs
    • XL recorded losses of RM215.4m due to the integration of Axis and high network expansion costs
    • More capex was channelled to Celcom and Bangladesh operations in 1Q15
    • Robi – Impacted by
      • country-wide political unrest and blockage
      • higher depreciation and amortisation charges.
  • Earnings growth from Celcom and XL remains uncertain, and sizable exposure to forex is a known risk to AXIATA’s earnings.
  • I will continue to hold, but won’t accumulate AXIATA in the near term.

Latest Financial – Q1 2015 Financial Report (19 May 2015) http://www.bursamalaysia.com/market/listed-companies/company-announcements/4741561

At the time of writing, I owned shares of AXIATA.

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5 thoughts on “AXIATA – Fundamental Analysis (20 May 2015)

  1. @Chong, what is happening to this announcement?

    22 May 2015
    1. Details of Corporate Proposal

    Involve issuance of new type/class of securities ? No
    Types of corporate proposal Others
    Details of corporate proposal Restricted Share Plan
    No. of shares issued under this corporate proposal 3,749,600
    Issue price per share ($$) Malaysian Ringgit (MYR) 4.1800
    Par Value ($$) Malaysian Ringgit (MYR) 1.000
    Latest issued and paid up share capital after the above corporate proposal in the following

    Units 8,606,907,351
    Currency Malaysian Ringgit (MYR)
    Listing Date 25 May 2015

    Like

    • The result wasn’t so good. It is a short term problem. 6.4 is the support.

      Also people sold down many stocks during release of 11MP.

      Like

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