Wednesday, May 23, 2012

Axiata Group: Maintain Hold - Headwinds Persist

Nothing to see for now. The seasonally weaker 1Q12 came in at 22% of our full year forecasts, in line with expectations. Data grew strongly but at the expense of margins and free cashflow, a double whammy that is unlikely to lift until 2013. Regulatory risks in India and Bangladesh are key concerns, as are rising competitive risks in Malaysia courtesy of Maxis. Maintain HOLD with a raised EV-derived TP of MYR5.30 (+4%).

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Source: Maybank Research - 23 May 2012

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