Company Result - Maxis Bhd

View previous topic View next topic Go down

Company Result - Maxis Bhd

Post by mabs on Mon 27 Feb 2012, 09:25

Result

- 4Q11 net profit surged 67.6% QoQ to RM900m due to broadband tax incentive of RM352m. However, 4Q11 revenue was flat at RM2.27bn.

- As a result, FY11 revenue of RM8.8bn (-0.8% YoY) was below forecast but net profit of RM2.5bn (+10.1% YoY) was higher than our expectation.

- Stable margins – 4Q11 EBITDA margin was lower at 48.7% (3Q11: 50%). For the full year, EBITDA margin improved to 50.3% from 49.8% following the scale down of its low-margin hub business.

Comment


- Flat subscriber growth– Maxis’ subscriber base was flat at 12.74m (consisting 9.43m prepaid and 3.31m postpaid), maintaining its market leadership.

- Steady ARPU in 4Q11 – Blended ARPU was unchanged at RM54. (Postpaid RM110, prepaid RM38 and wireless broadband RM65). ARPU for FY11 improved to RM52 from RM50 in FY10 thanks to higher postpaid ARPU of RM108 while prepaid ARPU was flat at RM36.

- Non-voice segment to lead the way - Future growth would come from non-voice revenue, which contributed RM984m in 4Q11 or 45.3% of total mobile revenue. In FY11, non-voice revenue grew 17% YoY to RM3.68bn from RM3.15n in FY10.

- Wireless broadband (WBB) slowing down – WBB subscribers fell 2% QoQ to 668k from 681k in 3Q11. However, WBB revenue was higher at RM134m compared to RM131m in 3Q11.

Earnings Outlook/Revision

- FY12 earnings revised downward - Following its 4Q11 performance, we are lowering our revenue and earnings forecast for 2012 by 8% and 12% respectively in view of slower growth and the lower broadband tax break which ends in Sept 2012.

- Dividend maintained at 40 sen - Maxis declared dividend of 16 sen per share, taking full year dividend to 40 sen per share (equivalent to yield of 6.7%), which is the same as FY10.

- Maxis’ cash position has been reinforced recently after issuing a new Islamic loan of RM2.45bn to repay its existing loan of RM1.45bn as well as for capital expenditure and working capital.

Valuation & Recommendation

- Downgrade to HOLD – The recent run-up in Maxis’ shares has lifted the stock closer to our target price of RM6.08 based on Dividend Discounted Model.
avatar
mabs
Member
Member

Posts : 922 Credits : 1154 Reputation : 143
Female Join date : 2011-11-17

Back to top Go down

Re: Company Result - Maxis Bhd

Post by sun on Mon 27 Feb 2012, 09:29

++ Clap
avatar
sun
Consulting Member
Consulting Member

Posts : 11087 Credits : 12324 Reputation : 356
Male Join date : 2010-12-22

Back to top Go down

Re: Company Result - Maxis Bhd

Post by mabs on Mon 03 Sep 2012, 10:11

Maxis - 2QFY12 Results

Result


- 2Q12 normalised net profit was flat at RM550m against RM557m in the previous quarter. Similarly, quarterly revenue was also flat at RM2.22bn compared to RM2.23bn in 1Q12.

- As a result, 1H12 revenue of RM4.45bn (+3.6% YoY) and net profit of RM1.11bn (+1.4% YoY) was within our expectation after achieving 49.8% and 48.3% of our forecast respectively.

- Lower margins – 2Q12 EBITDA margin was slightly lower at 49.9% (1Q12: 50.8%) due to higher marketing expenses. PAT margin for the quarter declined to 21% from 25.7% in 1Q12.


Comment

- Flat subscriber growth– Maxis’ subscriber base was flat at 12.7m (consisting 9.56m prepaid and 3.14m postpaid), maintaining its market leadership. Increase in prepaid net adds of 91k cushioned the 40k decline in postpaid.

- Steady ARPU in 2Q12 – Blended ARPU was unchanged at RM52. (Postpaid RM106, prepaid RM37 and wireless broadband RM65). ARPU for 1H12 improved to RM52 from RM50 in 1H11 thanks to higher prepaid and wireless broadband ARPUs of RM37 and RM65 respectively while postpaid ARPU was flat at RM106.

- Non-voice revenue slowing – 2Q12 non-voice revenue declined 2.9% QoQ to RM942m due to higher device revenue in the previous quarter. But non-voice revenue’s contribution to mobile revenue remained steady at 45%. In 1H12, non-voice revenue grew 9.8%% YoY to RM1.91bn from RM1.74n in 1H11.

- Higher wireless broadband (WBB) revenue – WBB revenue for 2Q12 grew 8.7% QoQ to RM137m despite subscribers falling 4.1% QoQ to 588k from 613k in 1Q12, which was compensated by higher ARPU of RM66 (vs RM64 in 1Q12).


Earnings Outlook/Revision

- FY12 earnings forecast maintained - Following its 2Q12 performance, we are keeping our revenue and earnings forecast for 2012.

- Maxis declared second interim dividend of 8 sen per share. We maintain our dividend forecast of 40 sen for FY12.


Valuation & Recommendation

- Downgrade to HOLD from BUY with unchanged target price of RM6.70 (based on DDM)– The run-up in Maxis’ share price above our target price prompt us for the downgrade.

- Maxis announced that it has formed a 10-year exclusive partnership with Astro for supply of IPTV content. In our opinion, the deal bodes well to expand its Home Services to compete with TM’s UniFi.

(Source: JF Apex)
avatar
mabs
Member
Member

Posts : 922 Credits : 1154 Reputation : 143
Female Join date : 2011-11-17

Back to top Go down

Re: Company Result - Maxis Bhd

Post by Cals on Mon 03 Sep 2012, 10:27

+1 for warning for now maxis retracing on this news

_________________
“It cannot be said too often that in speculation and investment, success comes only to those who work for it”
avatar
Cals
Administrator
Administrator

Posts : 25277 Credits : 57721 Reputation : 1766
Male 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 I’️d have been right perhaps as often as seven out of ten times.”
Stock Exposure : Technical Analysis / Fundamental Analysis / Mental Analysis

Back to top Go down

Re: Company Result - Maxis Bhd

Post by JF on Mon 03 Sep 2012, 10:32

oops, missed the new here

_________________
I seek opportunity … not security.
I do not wish to be a kept citizen.
Humbled and dulled by having the
State look after me.
I want to take the calculated risk;
To dream and to build.
To fail and to succeed. — Thomas Paine (Common Sense)
avatar
JF
Senior Member
Senior Member

Posts : 2785 Credits : 3269 Reputation : 163
Male Join date : 2011-10-07
Job/Hobbies : $$
Profit & Loss $$

Back to top Go down

Re: Company Result - Maxis Bhd

Post by Sponsored content


Sponsored content


Back to top Go down

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum