KUALA LUMPUR: OSK Research is maintaining its Neutral call on Telekom Malaysia and the target price is unchanged at RM3.50.
In its research note on Monday, Feb 28 it said TM has proposed a capital repayment (CR) of 29 sen/share to be executed in 2Q2011.
OSK Research said together with the earlier interim DPS of 13 sen and the final net DPS of 13.1 sen payable, total net dividend yield works out to be 13%.
'As with its previous CR exercise, we expect the market to greet the news positively, leading to a further share price re-rating,' it said.
OSK Research said it believes that much of the upside has been priced in, with\the 10% YTD share price gain on speculation of a special dividend payout.
'We roll over our valuation to FY12 post the results. We cut our earnings estimates for FY11/12 by 12-22% to take into account higher opex and upon lowering our previous topline assumptions, which appear overly optimistic.
'TP is unchanged as we expect the previous estimate for FY11 to be made up for now in FY12. Maintain NEUTRAL,' it said.
In its research note on Monday, Feb 28 it said TM has proposed a capital repayment (CR) of 29 sen/share to be executed in 2Q2011.
OSK Research said together with the earlier interim DPS of 13 sen and the final net DPS of 13.1 sen payable, total net dividend yield works out to be 13%.
'As with its previous CR exercise, we expect the market to greet the news positively, leading to a further share price re-rating,' it said.
OSK Research said it believes that much of the upside has been priced in, with\the 10% YTD share price gain on speculation of a special dividend payout.
'We roll over our valuation to FY12 post the results. We cut our earnings estimates for FY11/12 by 12-22% to take into account higher opex and upon lowering our previous topline assumptions, which appear overly optimistic.
'TP is unchanged as we expect the previous estimate for FY11 to be made up for now in FY12. Maintain NEUTRAL,' it said.
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