Axiata Group: Stabilising revenue prospects Buy

We maintain our BUY call on Axiata Group (Axiata) with an unchanged sum-of-partsbased fair value of RM5.32/share, which translates to an unchanged FY19F EV/EBITDA of 6x, 1SD below its 3-year average of 7x.

Axiata’s forecasts are maintained as 9MFY18 normalised net profit of RM967mil (preMFRS 15), excluding RM3.7bil impairment from the deconsolidation of India-based Idea from group accounts together with a RM176mil loss on dilution and RM257mil other provisions, came in within our expectations, making up 87% of our FY18F earnings but above consensus.

While 4QFY18 tends to be weaker, we highlight that the normalised results were already 4% away from street’s expectations. As a comparison, 9MFY17 accounted for 83% of FY17 normalised net profit.

Others:

Only World Grorp: Disappointing 1QFY19 but with better prospects ahead Buy

YTL Hospitality REIT: A soft patch in 1Q, stronger quarters ahead Buy

Bumi Armada: More impairments with unresolved debt refinancing Hold

Malakoff: Power outages in three power plants in 3QFY18 Hold

Velesto Energy: No relief from low charter rates Hold

Kian Joo Can: Higher costs still a cause of concern Underweight

SD Plantation: Sharper-than-expected QoQ fall in upstream profits Underweight

FGV Holdings: More impairments? Sell

QUICK TAKE

Plantation Sector: News flow for week 19 – 23 Nov Neutral

ECONOMIC HIGHLIGHT

Malaysia: Expect inflation to gradually trend upwards

NEWS HIGHLIGHTS

Top Glove: Likely to replace TM as KLCI constituent

Dayang Enterprise: Wins overseas deal

IPO: Hong Kong's hottest IPOs bring the worst returns to investors

Automobile Sector: Aston Martin to more than double production by 2025: CEO

Source: AmInvest Research - 26 Nov 2018