Not vested
Axiata Group Berhad [AXIATA MK] - Buy : Charms intact despite some challenges( RM5 / PT: RM5.8 )
Neeraja Natarajan; Sachin Gupta; Gopakumar Pullaikodi
Axiata reaffirmed its FY11F guidance of 10% revenue and EBITDA growth for the year, despite slower 1Q trends that were 2-4% below our expectations.
A sequentially weak quarter for XL, as well as strengthening of the Ringgit were key reasons.
Data is a key opportunity across the group, but with an eye on cost/capex efficiency as Axiata is still aiming to improve ROIC.
We continue to see upside to dividends, and Axiata’s mix of growth and valuation (of 13-14x FY11 PE) remains appealing. Maintain BUY.
Source: Nomura