Faron Ezequiel
Rookie
- Nov 28, 2014
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KUALA LUMPUR: Axiata Group Bhd's shares were up in the afternoon session today despite posting a lower pre-tax profit on Monday.
At 12.10pm, Axiata shares added one sen to RM7.20 with 1.17 million shares changing hands.
The telecommunications company yesterday reported a lower pre-tax profit of RM747.19 million for the third quarter ended September 30, 2014, compared with RM918.06 million in the same quarter last year.
Revenue fell to RM4.65 billion from RM4.75 billion previously.
Kenanga Research in its note today said that Axiata is confident of regaining growth momentum at its unit, Celcom, in the fourth quarter of 2014, post the information technology transformation programme.
"Moving forward, the group will remain focused on its long term transformation strategy, which includes innovative measures in current business whilst intensifying initiatives in data and related offering," the research house said.
Kenanga maintained its "market perform" rating for the company, but lowered the financial year earnings 2014-2015 forecast by 7.6 per cent and 1.1 per cent respectively, while reducing the target price to RM6.88 from RM6.92.
Meanwhile, RHB Research Institute remained ‘neutral’ on Axiata with an unchanged target price of RM7.30.
"While we are more upbeat on Celcom and another unit, XL's growth prospects in 2015, we believe these factors are relatively priced in.
"Both these operating companies have laid the foundation for future growth, but competition remains a key risk to earnings growth, given the lack of visible signs of diminishing competitive intensity," it added.-- Bernama
Source:
XL Axiata Axis capital Group Jakarta PT Telecom review
At 12.10pm, Axiata shares added one sen to RM7.20 with 1.17 million shares changing hands.
The telecommunications company yesterday reported a lower pre-tax profit of RM747.19 million for the third quarter ended September 30, 2014, compared with RM918.06 million in the same quarter last year.
Revenue fell to RM4.65 billion from RM4.75 billion previously.
Kenanga Research in its note today said that Axiata is confident of regaining growth momentum at its unit, Celcom, in the fourth quarter of 2014, post the information technology transformation programme.
"Moving forward, the group will remain focused on its long term transformation strategy, which includes innovative measures in current business whilst intensifying initiatives in data and related offering," the research house said.
Kenanga maintained its "market perform" rating for the company, but lowered the financial year earnings 2014-2015 forecast by 7.6 per cent and 1.1 per cent respectively, while reducing the target price to RM6.88 from RM6.92.
Meanwhile, RHB Research Institute remained ‘neutral’ on Axiata with an unchanged target price of RM7.30.
"While we are more upbeat on Celcom and another unit, XL's growth prospects in 2015, we believe these factors are relatively priced in.
"Both these operating companies have laid the foundation for future growth, but competition remains a key risk to earnings growth, given the lack of visible signs of diminishing competitive intensity," it added.-- Bernama
Source:
XL Axiata Axis capital Group Jakarta PT Telecom review
