KUALA LUMPUR (July 25): CIMB Research is Neutral on Axiata Group Bhd at RM5.85 with a target price of RM5.71 and said that while Idea’s 1Q13 core net profit was 7% below consensus and our estimates, the research expects subsequent quarters to be stronger.
In a note Wednesday, CIMB Research said the telco expects 1H13 industry growth to be muted (due to weaker prices) but is optimistic of its outlook.
“Our 1QFY13 core net profit excludes accelerated depreciation of Rs480m.
“We maintain our earnings estimates and SOP-based target price for Axiata. Despite its rising FCF, we are Neutral on Axiata due to weaker regional currencies and regulatory uncertainties in India. Telekom Malaysia remains our preferred pick,” it said.