KUALA LUMPUR: OSK Research said as expected, Axiata booked the earlier flagged impairment charge on Idea which contributed to the headline loss in 4QFY10.
It said on Thursday, Feb 24 that core earnings were nonetheless in line with its and consensus expectations. A first dividend per share of 10sen (32% payout) was'' proposed payable after its AGM in 2Q11.
'We view its 2011 KPIs as being low-balled with management aiming to outperform these targets. Our FY11 forecast is largely retained but we cut FY12 forecast by 8% post the conference call.
'We roll over our valuation metric to FY12 and now impute a 20% discount on Idea's valuation to factor in regulatory risks in India. Overall, our TP is raised slightly to RM5.83 from RM5.80. Axiata is trading at compelling 12.2x FY12 EPS for a 2 year EPS CAGR of 39.2%,' it said.
It said on Thursday, Feb 24 that core earnings were nonetheless in line with its and consensus expectations. A first dividend per share of 10sen (32% payout) was'' proposed payable after its AGM in 2Q11.
'We view its 2011 KPIs as being low-balled with management aiming to outperform these targets. Our FY11 forecast is largely retained but we cut FY12 forecast by 8% post the conference call.
'We roll over our valuation metric to FY12 and now impute a 20% discount on Idea's valuation to factor in regulatory risks in India. Overall, our TP is raised slightly to RM5.83 from RM5.80. Axiata is trading at compelling 12.2x FY12 EPS for a 2 year EPS CAGR of 39.2%,' it said.
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