Thursday, May 31, 2012

Telekom Malaysia: Maintain Buy - Called and Raised

Not all cards are on the table yet. TM proved that it is not a one-trick pony in 1Q12. 1Q12 core net profit was above our expectation at 26% of our FY12 forecast. While Consumer Unifi continued to grow at breakneck speed, its other businesses in SME (which also benefited from strong Unifi growth), Enterprise and Government did better and earned significantly higher margins than Consumer. In fact, this is where the potential lies for even higher quality, sustained growth in the future. We urge investors to stay on the buy side and raise our conviction with a 12% higher EV-based TP of MYR6.21.

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Source: Maybank Research - 31 May 2012

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