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Research by HLIB
HOLD  – TP RM2.70

"On track to meet FY24 KPI”

1H24 revenue of RM11.4bn (flat YoY) yielded a core net profit of RM330m (+>100%YoY) which missed ours but matched street estimate. The major deviations were higher-than-expected MI charge and effective corporate tax rate. Declared a singletier tax exempt DPS of 5 sen. In 1H24, sales growth was driven by edotco, XL, Robi, Smart, ADA and Boost which was more than sufficient to offset drags from Dialog and Link Net. Headline KPIs for FY24 are guiding for growth with a more prudent capex budget. Reiterate HOLD with lower SOP-derived TP of RM2.70. While we are positive on CelcomDigi merger over the long term, regulatory and economic risks are major concerns. Other potential corporate exercises that may unlock values include tower asset and digital businesses listings.

Analyst:
Tan J Young
[%tOHA%]

$KLSE-AXIATA
Research by HLIB
HOLD  – TP RM2.70

"On track to meet FY24 KPI”

1H24 revenue of RM11.4bn (flat YoY) yielded a core net profit of RM330m (+>100%YoY) which missed ours but matched street estimate. The major deviations were higher-than-expected MI charge and effective corporate tax rate. Declared a singletier tax exempt DPS of 5 sen. In 1H24, sales growth was driven by edotco, XL, Robi, Smart, ADA and Boost which was more than sufficient to offset drags from Dialog and Link Net. Headline KPIs for FY24 are guiding for growth with a more prudent capex budget. Reiterate HOLD with lower SOP-derived TP of RM2.70. While we are positive on CelcomDigi merger over the long term, regulatory and economic risks are major concerns. Other potential corporate exercises that may unlock values include tower asset and digital businesses listings.

Analyst:
Tan J Young
jytan@hlib.hongleong.com.my