[%ZuaE%]
Research by APEX
HOLD – TP RM 2.69

"Recovery is on track; but the Bangladesh market remained challenging”

• Axiata’s 2QFY24 core net profit jumped +385.9% yoy and +20.9% qoq to RM180.6m, bringing 1HFY24 core net profit to RM330.0m, which deemed in-line at 55% ours and 48% consensus expectations.
• Revised our earnings forecast for FY24-26 upward by +1.8%/+3.6%/+8.0% given that the impact from social unrest in Bangladesh is not as severe as previously anticipated coupled with brighter prospect from Edotco, propelled by demand from 5Gdeployment.
• We maintain our HOLD recommendation with a higher target price of RM2.69 based on DCF valuation (WACC of 7% with a long-term growth rate of 0.5%).

Analyst:
Steven Chong
[%OGqh%]

$KLSE-AXIATA
Research by APEX
HOLD – TP RM 2.69

"Recovery is on track; but the Bangladesh market remained challenging”

• Axiata’s 2QFY24 core net profit jumped +385.9% yoy and +20.9% qoq to RM180.6m, bringing 1HFY24 core net profit to RM330.0m, which deemed in-line at 55% ours and 48% consensus expectations.
• Revised our earnings forecast for FY24-26 upward by +1.8%/+3.6%/+8.0% given that the impact from social unrest in Bangladesh is not as severe as previously anticipated coupled with brighter prospect from Edotco, propelled by demand from 5Gdeployment.
• We maintain our HOLD recommendation with a higher target price of RM2.69 based on DCF valuation (WACC of 7% with a long-term growth rate of 0.5%).

Analyst:
Steven Chong
stevenchong@apexsecurities.com.my