KUALA LUMPUR: CIMB Equities Research is maintaining its Outperform call on Axiata Group Bhd'' following our non-deal roadshow with the telco.
It said on Wednesday, June 15 Axiata is putting in sufficient effort to counter the challenges of slowing or declining voice revenue and exploring new sources of revenue.
'Cost-efficiency and capex roadmaps are being put into place to cope with future demands. Management downplayed its dividend potential, saying that payout will rise gradually and it wants a balance sheet that gives it firepower for any potential in-country consolidation.
'In spite of this, we feel that it has room for a special dividend, which is a re-rating catalyst given its rapidly declining gearing and undrawn credit facilities. Our target price is RM6.08, based on SOP,' it said.
It said on Wednesday, June 15 Axiata is putting in sufficient effort to counter the challenges of slowing or declining voice revenue and exploring new sources of revenue.
'Cost-efficiency and capex roadmaps are being put into place to cope with future demands. Management downplayed its dividend potential, saying that payout will rise gradually and it wants a balance sheet that gives it firepower for any potential in-country consolidation.
'In spite of this, we feel that it has room for a special dividend, which is a re-rating catalyst given its rapidly declining gearing and undrawn credit facilities. Our target price is RM6.08, based on SOP,' it said.
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