The Official Kenanga Warrants Blog
MAXIS: Kenanga Research maintain UNDERPERFORM and TP of RM4.90 (Source: Kenanga Research)
NagaWarrants
Publish date: Mon, 05 Aug 2019, 10:46 AM
NagaWarrants
0 212
Official NagaWarrants Blog by Kenanga Investment Bank Bhd. We issue warrants to meet investors' demand for trading opportunities & alternative investments
This blog exists to offer quick updates & hopefully offer friendly, useful warrant info to achieve your trading goals.
Disclaimer: The info posted is for your info only & shall not be construed as an investment advice or solicitation to purchase. Please refer to the Base Prospectus & Term Sheets.
This blog exists to offer quick updates & hopefully offer friendly, useful warrant info to achieve your trading goals.
Disclaimer: The info posted is for your info only & shall not be construed as an investment advice or solicitation to purchase. Please refer to the Base Prospectus & Term Sheets.
As of 5 August 2019, If you wish to gain exposure on MAXIS, we have
- MAXIS-C13 Effective Gearing of 6.23x & 5 Ticks Sensitivity
For more information about these warrants, visit our website www.nagawarrants.com
Do join us for FREE Trading Ideas on Telegram too https://t.me/NagaWarrants
1H19 core earnings of RM795.0m (-20%) and interim dividend of 5.0 sen are within expectations. MAXIS remains steadfast with its plan to be a prominent convergence player by 2023. However, near-term performance is bogged down by lower overall service revenue in both prepaid and postpaid segments, which could persist for the remainder of FY19. Maintain UP and DCF-driven TP of RM4.90 (based on a WACC: 8.8%, TG: 1.5%).
1H19 as expected. 1H19 core earnings of RM795.0m came in within both our and consensus expectations, accounting for 50% and 49% of respective full-year estimates. An interim dividend of 5.0 sen (YTD: 10.0 sen) was declared, which is also within our expectation. We anticipate a total payment of 17.0 sen for FY19.
YoY, weaker 1H19 total turnover of RM4.44b (-1%) came from a decline in service revenue by 3% to RM3.87b. This was the result of weaker prepaid (-7%) and postpaid (-4%) revenues. While registering somewhat stable ARPU (2Q19 Prepaid-ARPU: RM41/subscriber, vs 2Q18 Prepaid-ARPU: RM42/subscriber), Prepaid numbers were softened by a higher customer conversion to Postpaid. At the meantime, Postpaid was dampened by customers skewing towards more budget-friendly plans (2Q19 Postpaid-ARPU: RM91/subscriber vs 2Q18 Postpaid-ARPU: RM96/subscriber). Normalised EBITDA fell by 6%, owing to the lower top-line and opex post-termination of past wholesale agreements. Subsequently, 1H19 core net earnings closed at RM795.0m (-20%) after incurring higher depreciation, interest and tax charges.
QoQ, 2Q19 revenue saw a similar flattish decline, mainly stemming from poorer Postpaid revenue (-3%). Likewise to the above, a growth in subscriber base (+3%) was undermined by lower ARPU. Ultimately, 2Q19 core net income of RM391.0m was weaker by 3%, as a relatively stable cost environment was hampered by a higher effective tax rate of 26.3% (+1.5ppt) during the period.
Farsighted plans. MAXIS is staying with its 2023 plans to achieve a targeted service revenue of RM10.0b while introducing productivity gains of RM1.0b by being a leading converged communications provider. This will be fuelled by a base investment of RM1.0b over the next 3 years. Management, however, pointed out that this would not account for changes in spectrum charges in the future. Other ambitions also include expanding the group’s enterprise business, by engaging in partnerships with other corporations to launch new solutions and technologies. At least in the immediate term, management keeps with its guidance that: (i) service revenue would experience a low-single digit decline, and (ii) normalized EBITDA to register a mid-single digit drop.
Post-results, our FY19E/FY20E earnings are tweaked by -0.3%/ +0.2% following 2Q19 statistical updates.
Maintain UNDERPERFORM and DCF-driven TP of RM4.90. Our target price (based on WACC: 8.8%, TG: 1.5%) implies a 12.0x FY20E EV/Fwd. EBITDA, which is close to the stock’s -1SD over its 3-year mean. While the group continues to keep a focused approach with its capex plans and investments, the group is sidelined by fundamentally better peers (i.e. DIGI with stronger margins, dividend yields and ROE). Additionally, merger talks are driving investors’ interests towards other players.
Risks to our call include: (i) higher-than-expected service revenue growth, (ii) lower-than-expected OPEX, and (iii) less ggressive competition.
More articles on The Official Kenanga Warrants Blog
‼️Rubber Gloves Warrants Buy At Bid!
Created by NagaWarrants | May 15, 2024
Buy at bid: Means we are offering a limited number of these warrants at bid price when their corresponding underlying assets are trading near lower bottom of the Naga Matrix.
Buy At Bid: Warrants on Wednesday!
Created by NagaWarrants | May 15, 2024
Buy at bid: Means we are offering a limited number of these warrants at bid price when their corresponding underlying assets are trading near lower bottom of the Naga Matrix.
Buy At Bid: Most Traded Warrants on Friday!
Created by NagaWarrants | May 10, 2024
‼️Share 3 KEY LEARNINGS ON WARRANTS on our Facebook & stand a chance to win RM50 Shopee e-vouchers!
Link: https://bit.ly/FacebookMayGiveaways
Deadline: 6.00pm @ 10 May 2024
New Issuance Today: Bull Run Fever Grips Malaysia and HK Markets!
Created by NagaWarrants | May 08, 2024
Dated: 8 May 2024
TOMORROW: Longevity in Banking Fundamentals & Structured Warrants
Created by NagaWarrants | May 08, 2024
Date: 9th May 2024 (Thursday)
TOMORROW: 2Q24 Malaysia Market Outlook: The Trend is Your Friend
Created by NagaWarrants | Apr 24, 2024
Join us as we dive into the stock market outlook for 2024, exploring the sustained uptrend from 1Q, driven by policy easing, strong corporate earnings, and political stability.
2Q24 Malaysia Market Outlook: The Trend is Your Friend
Created by NagaWarrants | Apr 19, 2024
https://events.teams.microsoft.com/event/33b9b728-35c2-461b-aa4e-7b3df42a40ee@c9be0b49-f7ab-48b5-befd-f743bf20ff7e?fbclid=IwAR3tgut9FAsAdmyw13qb-SZ5xLOtC_F-B10F7Tu6ycGOfNALihVQIKPLB88_aem_ARu2hYf6g1Em
Featured Posts
Apps
Top Articles
1
3
4
6
7
8
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
MQ Trading Signals
Stock
Time
Signal
Duration
Stock
Time
Signal
Duration
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
