[%bapJ%]
Research by Public
Neutral – TP RM2.35

"Stronger Contribution From Cambodia”

Axiata Group (Axiata) reported a net profit of RM104.4m in 2QFY24 (2QFY23: net loss of RM235.9m), mainly driven by stronger contribution from Cambodia’s Smart and Indonesia’s XL. Stripping out non-operating items, the group delivered a normalised net profit of RM180.6m, jumping 386% YoY. Cumulatively, the results were above our estimate, coming in at 60% of our full-year forecast but were in line with consensus. The discrepancy in our forecast was largely due to higher-than-expected contribution from Cambodia. We raise our FY24-26F earnings forecasts by an average of 16% to factor in higher margin. As such, our SOTP-based TP is revised to RM2.35. Given a limited downside to our TP, we upgrade Axiata to Neutral. An interim dividend of 5.0sen per share was declared (2QFY23: 5.0sen).

Analyst:
Eltricia Foong
[%qCRD%]

$KLSE-AXIATA
Research by Public
Neutral – TP RM2.35

"Stronger Contribution From Cambodia”

Axiata Group (Axiata) reported a net profit of RM104.4m in 2QFY24 (2QFY23: net loss of RM235.9m), mainly driven by stronger contribution from Cambodia’s Smart and Indonesia’s XL. Stripping out non-operating items, the group delivered a normalised net profit of RM180.6m, jumping 386% YoY. Cumulatively, the results were above our estimate, coming in at 60% of our full-year forecast but were in line with consensus. The discrepancy in our forecast was largely due to higher-than-expected contribution from Cambodia. We raise our FY24-26F earnings forecasts by an average of 16% to factor in higher margin. As such, our SOTP-based TP is revised to RM2.35. Given a limited downside to our TP, we upgrade Axiata to Neutral. An interim dividend of 5.0sen per share was declared (2QFY23: 5.0sen).

Analyst:
Eltricia Foong
eltriciafoong@publicinvestbank.com.my