Hot Stock Maxis falls 1.6% after 1Q results, downgrades by analysts
Page 1 of 1
Hot Stock Maxis falls 1.6% after 1Q results, downgrades by analysts
Hot Stock Maxis falls 1.6% after 1Q results, downgrades by analysts |
Business & Markets 2014 |
Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com |
Thursday, 08 May 2014 12:28 |
KUALA LUMPUR (May 8): Maxis Bhd’s share price declined as much as 1.6% after releasing its first quarter results, which prompted analysts to downgrade their recommendations and target prices for the stock.
At 12.15 pm, Maxis fell 10 sen or 1.4% to RM6.88 with some 5.4 million shares done.
The stock was earlier among the top losers on the exchange, falling as much as 11 sen or 1.6% to a low of RM6.87.
For its first quarter ended March 31, 2014, the group reported net profit of RM484.0 million, up 1.9% from RM475.0 million in the previous year’s corresponding quarter.
However, revenue for 1QFY14 fell to RM2.12 billion from RM2.33 billion in 1QFY13.
The group had announced an interim single-tier tax-exempt dividend of 8 sen per share, with the entitlement date on May 5, 2014, payable on June 27, 2014.
Hong Leong IB Research (HLIB) today downgraded the company to “trading sell” from “hold”, and cut its target price for the stock to RM6.20 from RM7.24.
The research house noted that Maxis’ service revenue fell due to lower prepaid RGS base and OTT cannibalizing voice and SMS revenues.
“Post 1Q14, Maxis drew down RM2.5 billion financing facility for refinancing, capital expenditure and general working capital, which would elevate net debt/EBITDA to 2 times, implying the 40 sen dividend will not sustain beyond FY14,” said HLIB.
Maybank Investment Bank Bhd, on the other hand, has maintained its “hold” call on Maxis, but has lowered its TP to RM7.10 from RM7.20.
The research house also lowered its 2014 future cash flow generation forecast to account for a universal service provision payment of RM500 million, hence lowering its dividend assumption to 30 sen per share from 2015 onwards.
Cals- Administrator
- Posts : 25277 Credits : 57721 Reputation : 1766
Join date : 2011-09-08
Location : global
Comments : “My plan of trading was sound enough and won oftener that it lost. If I had stuck to it Iâ€d have been right perhaps as often as seven out of ten times.â€
Stock Exposure : Technical Analysis / Fundamental Analysis / Mental Analysis
Similar topics
» Hot Stock Top Glove falls 8.3% on weak 2Q results, downgrades
» Hot Stock Notion VTec falls 3% after 3Q results, downgrades
» Hot Stock MPI falls 2.65% after AffinHwang Capital downgrades stock to Sell
» Hot Stock MAHB falls 2.3% on downgrades, MAS weakness
» Stock Focus UEM Sunrise hit by analysts downgrades after poor 2Q results, lower sales target
» Hot Stock Notion VTec falls 3% after 3Q results, downgrades
» Hot Stock MPI falls 2.65% after AffinHwang Capital downgrades stock to Sell
» Hot Stock MAHB falls 2.3% on downgrades, MAS weakness
» Stock Focus UEM Sunrise hit by analysts downgrades after poor 2Q results, lower sales target
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum