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Resilience Amid Competition Malaysia’s telecom sector is expected to remain resilient despite intensifying competition, according to TA Securities analyst Chan Mun Chun. Service revenue should hold steady as mobile operators prioritize  value creation over price wars . 5G Expansion in Focus The sector’s outlook hinges on the rollout of  U Mobile’s rival 5G network , targeting 80% population coverage by 2H 2026. To remain competitive,  Digital Nasional (DNB)  must continue upgrading its infrastructure and improving service quality. Financial Backing Secured To support DNB’s operations and working capital,  CelcomDigi (CDB), Maxis, and YTL  have each committed MYR116.7 million in fresh shareholder advances. Both CelcomDigi and Maxis are expected to fund these commitments from internal resources, thanks to their  healthy cash positions . Sector Rating: Overweight TA Securities maintains an  Overweight  stance on Malaysia’s telco sector, with...

On March 26, 2025, the  FBM KLCI  closed at  1,518.05 , up  0.29% , with  Axiata  ($6888.MY) leading the charge as the top gainer, surging  5.06%  to  RM1.870 . The  top loser  for the day was  YTL  ($4677.MY), falling  1.91%  to  RM2.050 . Key Movers in FBM 70 In the  FBM 70 ,  Astro  ($6399.MY) saw an impressive rise of  11.76% , closing at  RM0.190 , while  Hibiscus  ($5199.MY) led the losses with a  3.72%  drop, ending at  RM1.810 . Malaysia REITs In the  REITs  sector,  IGB REIT  ($5299.MY) was the top performer, gaining  0.96%  to close at  RM0.525 , while  ALS REIT  ($5269.MY) dropped  1.35% , closing at  RM0.365 . Most Actively Traded Stocks The most actively traded stock was  CIMB  ($1023.MY), climbing  0.57%  to  RM7.040 , with a turnover of  RM160.42 million . For ...

Axiata Group Bhd has announced a buyback offer of up to US$200 million for its outstanding medium-term notes (MTNs) due in 2050, issued by its subsidiary Axiata SPV5 (Labuan) Ltd. The MTNs, originally valued at US$1 billion, are listed on the Singapore Exchange. This buyback initiative is part of Axiata’s strategy to reduce gross debt, lower interest costs, and optimize its capital structure by using surplus cash to retire and cancel the purchased notes. Key Details: Buyback Offer: Axiata is offering eligible holders the opportunity to sell back their MTNs, with the offer set to expire on September 27, 2024. The terms of the offer are detailed in the tender offer memorandum. Strategic Financial Management: The buyback is aimed at reducing Axiata’s debt burden and improving its financial health, reflecting the company’s focus on managing interest costs and enhancing its overall capital structure. Market Reaction: Following the announcement, Axiata's share price increased by 3.66%...

  Shares in Axiata Group Bhd (KL) extended their decline on Thursday, nearly erasing this year’s gains amid concerns over the impact of civil unrest in Bangladesh on the group's key subsidiary. Axiata shares fell to RM2.42, their lowest since January 4. The stock ended the day at RM2.43, down six sen or 2.4% from the previous day, giving the company a market capitalisation of RM22.31 billion on Bursa Malaysia. Apex Securities cut its target price for Axiata to RM2.55 from RM2.94, highlighting rising macroeconomic risks in the frontier market and weaker investor sentiment. Escalating anti-government protests in Bangladesh are expected to affect Axiata’s subsidiary, Robi Axiata PLC, which relies heavily on the prepaid mobile business. Robi is the second largest mobile network operator in Bangladesh and contributed 18% of Axiata’s operating profit. Shares in Axiata have declined for the fourth consecutive day, losing more than 13% since the start of June. The unrest in Bangladesh, ini...

Axiata Group Bhd has recently completed a significant acquisition, bringing Airtel Lanka under the umbrella of its subsidiary, Dialog. This move marks a major shift in Sri Lanka's telecom landscape and presents both opportunities and challenges for investors. Key Insights from the Acquisition: Market Consolidation in Sri Lanka Axiata, Dialog, and Bharti Airtel signed an agreement in April to merge their operations in Sri Lanka. Airtel Lanka has been absorbed by Dialog through the issuance of 952.7 million shares, giving Airtel a 10.355% stake in the expanded Dialog. Implications for Telecom Services Enhanced Connectivity: The merger aims to reduce infrastructure overlap, leading to fewer disruptions and improved service quality. Customers can expect faster internet speeds and clearer calls as the companies combine their resources. Cost Savings and Efficiencies: The consolidation is expected to bring about cost savings and operational efficiencies, potentially translating to more...

Axiata Group Bhd has finalized the acquisition of Airtel Lanka, a wholly-owned subsidiary of India’s Bharti Airtel. The transaction, executed via Axiata’s 83%-owned unit Dialog Axiata, involved the issuance of 952.7 million shares, equating to a 10.355% stake in Dialog’s enlarged share base to Bharti Airtel. The merger agreement, signed in April, aims to streamline operations in Sri Lanka by combining the resources and infrastructure of Axiata, Dialog, and Bharti Airtel. The consolidation is expected to yield substantial economies of scale, reduce infrastructure duplication, and generate significant synergies in technology and capital expenditure. This, in turn, will enhance high-speed broadband connectivity, voice services, and other value-added offerings while driving cost savings and operational efficiencies. Market Reaction and Analyst Insights Despite the strategic benefits, the market response was lukewarm, with Axiata shares closing down 2.31% to RM2.54, valuing the group at RM2...

Maintain buy with target price (TP) of RM5.00 Axiata and its wholly-owned subsidiary, edotco Group (edotco) announced a USD600m primary and secondary equity private placement deal with Innovation Network Corporation of Japan (INCJ) and Khazanah Nasional (Khazanah). The maiden equity fund raising exercise for edotco sets a new benchmark as the largest global tower sector private placement in 2016. Currently managing 25,200 towers across five countries, edotco is the world's 11th largest tower company. With this fund raising exercise, we expect edotco to be more aggressive in M&A activities before pursuing its planned IPO in 2017. Meanwhile, we estimate that the secondary share placement by Axiata of USD200m would help to pare down FY17F gross debt/EBITDA from 2.2x to 2.0x. Overall, we are positive on this deal as it allows Axiata to unlock value of edotco in the future as well as reduce its gearing, albeit marginally. We maintain our Trading  Buy  call and...

Upgrade to BUY from neutral with target price (TP) of RM5.00 Axiata reported normalised earnings of RM506m (-1.7% YoY) for 3Q16, after stripping out accelerated depreciation, forex loss, non-cash accounting adjustment and gain on disposal of tower assets. 9M16 annualised net profit of RM1,341m came in below expectations, accounting for 68% of our and market estimates. We cut our earnings forecasts by 9% and revise down our  TP  to  RM5.00 . At 20x forward PER, valuation looks appealing relative to its historical trends, though we are still concerned with the underlying risks attached to its overseas expansions and hence, we are only upgrading Axiata to  Trading Buy  from Neutral. 3Q16 revenue increased by 7.7% YoY.  The increase in group’s revenue was mainly due to contribution from Nepal and higher revenues in Sri Lanka, Bangladesh and Cambodia. However, this was partially offset by lower revenue from Malaysia and Indonesia, which saw a decl...

Maintain Neutral, Preference: Axiata Malaysia telco sector Muted outlook   4Q15 results were mixed – mobile players struggled while it was more business-as-usual for fixed-line players. 2016 guidance was unanimously muted, and we have lowered FY16/17 net profit forecasts across the board. We now have HOLD ratings on all our stocks. On a relative basis, our preference is for Axiata (HOLD, TP: MYR6.10).  4Q15: Mobile struggled; routine for fixed 4Q15 proved to be another challenging quarter for the mobile players, with net profit of the Big 3 all below expectations. The Big 3 again posted sequential service revenue decline (-0.7% QoQ), which meant fullyear service revenue of the Big 3 declined for a second consecutive year (-1.0% YoY). Net profit was further depressed by higher-than-expected depreciation, interest expense and taxes. Meanwhile, full-year results of fixed-line players (TM and TDC) were not as negative, with TM in line and TDC above expectations on f...