Axiata Group Berhad
Wed, 13-Dec-2023 07:15 pm
by Lee Cherng Wee • Apex Research

Counter

AXIATA (6888)

Target Price (RM)

3.06

Recommendation

Buy

  • Axiata’s 9MFY23 core net profit of RM255.2m was below our expectations due to higher depreciation, interest cost and lower contribution from CelcomDigi. Reported net loss of RM1.30b came mostly due to RM1.87b asset impairment for Ncell.
  • In view of the challenging outlook, Axiata has decided to exit Nepal and reclassified Ncell as asset held for sale. To recap, Axiata bought 80% stake in Ncell for RM5.9b in 2016 and was slapped with capital gains tax of RM785.0m in 2019.
  • We maintain our BUY recommendation with a lower target price of RM3.06 (previously RM3.27) after reducing the SOP value for Ncell.
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.452920 4.487673
EUR 4.698373 4.707035
CNY 0.612094 0.612693
HKD 0.572113 0.576600
SGD 3.311112 3.337265