Axiata Group Berhad

传国库与公积金财团 洽购Edotco 63%股权

消息人士披露，由国库控股（Khazanah Nasional）和大马雇员公积金局（EPF）组成的财团，正洽购亚通（AXIATA，6888，主板电信与媒体股）旗下电信塔经营商Edotco的63%股权。

财经周刊《TheEdge》引述消息称，该财团将收购亚通的所持Edotco的股权，从而协助亚通减轻债务负担。

此前，市场盛传亚通有意通过首次公开募股（IPO）或以直接脱售的方式，套现其在Edotco的投资；而最新进展显示，亚通可能采取出售的方式来套现。

目前，国库控股和雇员公积金局尚未回应上述传言。

截至今年3月底，亚通总债务为231亿9000万令吉，外币债务高达215亿令吉，当中55%或127亿令吉是以美元计价。

据兴业投行估算，亚通截至去年12月底，净债对股本率为66.5%；肯纳格投行则指其负债率企于0.9倍。

亚通在净债对股本率和负债率上，都高于其东盟同行业者——新加坡电信；两家公司都在多个亚洲国家开展业务。

实际上，亚通有意出售Edotco并非新鲜事，早在2020年就有计划透过首发股活动套现，但因市况影响，上市路径不再是最佳方案。

根据亚通2023财年年报，国库控股持有Edotco的63.72%股权，是最大的股东、其次为国民投资机构（PNB）持有18.34%，以及雇员公积金的18.13%股权。

$AXIATA / 6888 (AXIATA GROUP BERHAD)

Source from eNanyang

Titan Trading Notes For Thursday [27/3/2025]:

KLCI had a decent rebound back towards the 1518 points region with an overall mixed market sentiment as we still saw almost 430 counters closing red for the day. Daily trading volume settled around the 3.1 billion mark, which is still average for now.

Main stocks that showed strong buying momentum would be the likes of PBBANK, DENGKIL, CIMB, AXIATA, LSH, PECCA, TANCO, MAHSING, ASTRO, and RHBBANK. All of which were able to sustain their rallies throughout the day on the top volumes list despite the mixed market sentiment.

$AXIATA / 6888 (AXIATA GROUP BERHAD) been taking a huge hit over the past few months, been retracing all the way back towards the RM 1.70+ major support levels, and recently was able to breakout back towards the RM 1.90+ regions today with good volume.

Seems to have formed its dip regions here already and if able to sustain above its RM 1.82+ immediate support levels, could continue to rebound back towards the RM 1.90 - RM 2+ resistance levels soon in the coming weeks here.

Will be monitoring AXIATA closely.

$CTOS / 5301 (CTOS DIGITAL BERHAD) since retracing all the way back towards its RM 1.05+ major weekly support levels, been able to recover quite well over the past week here, breaking out back towards the RM 1.17 regions today with good volume.

Seems to have reached its long term support levels here already and if able to sustain above its RM 1.13+ support, could trend back up towards the RM 1.20 - RM 1.28+ resistance levels in the coming weeks here.

Will be monitoring CTOS closely.

Overall market sentiment remains weak with relatively low volume. Foreign funds continue to sell heavily with only local institutions mopping up shares. Retail participation is at a 10 year low...

In such scenarios, most likely the market will consolidate until we see positive news coming back to stimulate the market, bringing back foreign funds and stimulating retail participation.

$AXIATA / 6888 (AXIATA GROUP BERHAD)
Research by RHB

$AXIATA / 6888 (AXIATA GROUP BERHAD)
Research by CGSI

$AXIATA / 6888 (AXIATA GROUP BERHAD)
Research by TA

$AXIATA / 6888 (AXIATA GROUP BERHAD)
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$AXIATA / 6888 (AXIATA GROUP BERHAD)
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$AXIATA / 6888 (AXIATA GROUP BERHAD)
Research by KENANGA

$AXIATA / 6888 (AXIATA GROUP BERHAD)
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$AXIATA / 6888 (AXIATA GROUP BERHAD)
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$AXIATA / 6888 (AXIATA GROUP BERHAD)
Research Report by MAYBANK

$AXIATA / 6888 (AXIATA GROUP BERHAD)
Research Report by KENANGA

$AXIATA / 6888 (AXIATA GROUP BERHAD)
Research Report by CGSI

$AXIATA / 6888 (AXIATA GROUP BERHAD)
Research Report by APEX

$AXIATA / 6888 (AXIATA GROUP BERHAD)
Research by Maybank

KUALA LUMPUR: Boost Bank by Axiata Group Bhd and RHB Bank Bhd is rewarding all Malaysians with a 5% per annum daily interest rate through the Boost Birthday Jar to celebrate Boost’s 7th birthday.

KUALA LUMPUR: Boost Bank by Axiata Group Bhd and RHB Bank Bhd is rewarding all Malaysians with a 5% per annum daily interest rate through the Boost Birthday Jar to celebrate Boost’s 7th birthday.

The big names like TMUS/Verizon in telecommunication sector of US are seeing some movements.

$MAXIS / 6012 (MAXIS BERHAD) moved ahead of CDB & $AXIATA / 6888 (AXIATA GROUP BERHAD), is telecom back as a defensive rotation amidst recession fear?

Plus, 5G is another overlooked strength of Malaysia when it comes to data Center/AI. The utilization is getting higher and rating of 5G is globally recognised. Alongside with the exemption of undersea cable repair works, it is sort of resounding how telecommunication works is also at the core of attracting big tech like MSFT to Malaysia, other than the cheap lands and energy generation reasons.

If we give a bit more far fetched imagination, the realisation of AI adoption by end user in terms of automated driving, smart city etc, needs a low latency network.

Data centre & AI
1. Land to build by property counters ✅
2. Energy by $TENAGA / 5347 (TENAGA NASIONAL BHD) ✅
3. 5G? 🤔

Of course, this is very forward looking thoughts that may take year if not longer. Just a food for thought. I’m keeping an close eye on the telecom names till next year

$AXIATA / 6888 (AXIATA GROUP BERHAD) - 2QFY24

Core net profit driven by strong performances from Cambodia’s Smart and Indonesia’s XL. This result met consensus expectations but exceeded some forecasts.

Revenue and Growth:
Revenue increased to RM5.8bn (+2.9% YoY), with notable contributions from edotco and Cambodia. However, some units like Link Net and Dialog lagged.
For 1H24, revenue was RM11.4bn, flat YoY, while core net profit was RM330m (+159% YoY).

Operational Highlights:
Edotco saw significant revenue growth (+24.6% YoY) and robust EBIT performance.
XL Axiata’s subscribers grew slightly, and blended ARPU remained strong.
Smart’s revenue grew by 16.2% YoY, with improved ARPU and subscriber base.

Here are some key points to consider:

Strong Performance : The notable profit contributions from Cambodia’s Smart and Indonesia’s XL are encouraging. This highlights Axiata's ability to drive growth in its major markets despite regional challenges.

Operational Efficiency: The growth in edotco’s revenue and EBIT is a positive sign, reflecting effective cost management and strong demand for infrastructure, particularly with 5G deployment. Similarly, the improved ARPU and subscriber growth in XL and Smart indicate solid operational execution.

Revenue Growth and Margin Improvement: The revenue growth of 2.9% YoY, coupled with a significant increase in profit, suggests that Axiata is successfully offsetting weaknesses in certain regions

$AXIATA / 6888 (AXIATA GROUP BERHAD)

$AXIATA / 6888 (AXIATA GROUP BERHAD)
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

$AXIATA / 6888 (AXIATA GROUP BERHAD)
Research by RHB
Buy – TP RM 3.40

"Good Operational Momentum; Reiterate BUY”

Reiterate BUY with unchanged MYR3.40 SOP TP (38% upside), c.4% yield. Results were in line with our estimates, albeit a consensus beat, with solid interest rate environment and stronger MYR, which aids in balance sheet repair. Our TP includes a 2% ESG premium with near-term and long-term emission targets validated on a revised 2022 baseline

Analyst:
Jeffrey Tan
jeffrey.tan@rhbgroup.com

$AXIATA / 6888 (AXIATA GROUP BERHAD)
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

$AXIATA / 6888 (AXIATA GROUP BERHAD)
Research by Maybank
BUY – TP RM 3.20

"So far so good”

Axiata’s 2Q24 results were in line, with no material shifts in the operating momentum of most op-cos. Gearing improved, and Axiata remains on track for a 10sen annual DPS. Despite potential near-term headwinds, we continue to view Axiata’s overall risk-reward favourably, with sequential net profit recovery and balance sheet repair being potential re-rating catalysts. Maintain BUY with a lower SOP-based TP of MYR3.20 (-9%)

Analyst:
Tan Chi Wei, CFA
chiwei.t@maybank-ib.com

$AXIATA / 6888 (AXIATA GROUP BERHAD)
Research by TA
HOLD – TP RM2.65

"Solid 1HFY24”

After incorporating a 4-star ESG premium based on our latest internal guidelines, we revised the target price from RM2.57 to RM2.65, based on SOTP valuation. Upgrade the stock from Sell to Hold.

Analyst:
Chan Mun Chun
mcchan@ta.com.my

$AXIATA / 6888 (AXIATA GROUP BERHAD)
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

$AXIATA / 6888 (AXIATA GROUP BERHAD)
Research by MIDF
NEUTRAL – TP RM2.56

"Earnings Volatility to Persist”

• Maintain NEUTRAL with an unchanged SOP-derived target price of RM2.56 post the 2QFY24 results announcement
• Better performance from the major opcos lifted 1HFY24 normalised earnings to RM330.0m (+340.0%yoy), in-line with expectation
• Some opcos may potentially suffered from earnings pressure in 2HFY24
• First interim dividend of 5sen, on track to meet full year target of 10sen per share

Analyst:
Foo Chuan Loong, Martin
martin.foo@midf.com.my

$AXIATA / 6888 (AXIATA GROUP BERHAD)
$KLSE-CDB

$AXIATA / 6888 (AXIATA GROUP BERHAD)
Research by Kenanga
OUTPERFORM– TP RM 3.00

" Prepaid ARPU Traction Powered by AI”

XL is optimistic of sustained traction in its prepaid ARPU and subscriber expansion. This is underpinned by: (i) minimal churn from high-quality customers, (ii) personalized marketing powered by artificial intelligence (AI) on XL’s app, and (iii) ongoing implementation of AI-guided dynamic pricing in selected regions. We maintain our forecasts, TP of RM3.00 and OUTPERFORM call..

Analyst:
Kylie Chan Sze Zan
kyliechan@kenanga.com.my

$AXIATA / 6888 (AXIATA GROUP BERHAD)
Research by HLIB
HOLD– TP RM2.71

"XL 1H24 results”

XL’s 1H24 core PAT of IDR1tn (+58% YoY) was a beat thanks to lower-thanexpected cost structure. Sequentially, total base added 900k QoQ to 58.5m subs as prepaid sub base gained. Both prepaid and postpaid ARPUs increased in 2Q24. Improved service quality with 4G coverage expansion while shutting down 3G footprints. Data growth remains solid supported by network quality and smartphone adoption. XL Home subs topped 267k as convergence penetration reached 81%. XL Satu Fiber is available in 104 cities now. Maintain HOLD on Axiata with unchanged TP of RM2.71.

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