FIGURE 1: AXIATA GROUP BERHAD
LAST 5 YEARS SHARE PRICE TREND
**analysis
based on 2018 annual report.
1.
GENERAL INTRO: Axiata, which is the parent
company of Celcom, is one of the major mobile network providers in Malaysia.
2.
NOTABLE POINTS:
a. different
from other operators who mainly operate in Malaysia, Axiata operates in 6
countries, including Malaysia, Indonesia, Sri Lanka, Bangladesh, Cambodia, and
Nepal, in 2018 report, it declares a customer base of 149 million
b. for
its Malaysia at Celcom, reported prepaid (average-rate-per-user) ARPU is RM35,
postpaid ARPU is RM89, blended ARPU RM49
c. in
2018 financial year, overall CAPEX was RM6670 million
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (million): ~23885 million in 2018 annual report, this is a high revenue
company.
b. SHARE
PRICE: from 2015-2019, share price is decreasing from around RM7 to around RM4
c. EARNING
PER SHARE (EPS): earning per share in last 5 years decreased from 27.2 to -55.4sen,
Losses reported in 2018 was due to impairment losses from its Indian associate
company Idea's merger with Vodafone.
d. FUTURE
POTENTIAL/PROSPECTS: quite dependable and reliable counter, share price expected
to be stable.
e. CAPITAL
EXPENDITURE (CAPEX): spending on purchase of new fixed assets is RM 6670
million, around 14% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2018 report, Axiata declared a total dividend payout of 9.5 sen per
share, amounts to dividend yield of 2.26 % based on current share price.
b. CONSISTENCY:
consistent dividend payout, last five years (2015-2019) dividends declared range
between 8 to 22 sen per share.
c. DIVIDEND
PAYOUT RATIO: in 2018 financial year, Axiata paid out about 85% of its earnings
to investors in the form of dividend. The payout ratio ranged from 50-85% in
last five years.
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2018 financial year, Axiata achieved a very poor return of
shareholders’ equity, at -3.77%, due to its associate company’s impairment
losses.
b. COST-TO-INCOME
RATIO: cost-to-income ratio is high at about -649%.
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is positive, around RM 3787 million, equivalent to RM 0.42 per
share
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is very well supported by institutional investors, there are 30 institutional
investors at top 30 major shareholders list, including EPF (16.16%) and PERMODALAN
NASIONAL BERHAD (1.49%), SKIM AMANAH SAHAM BUMIPUTERA (11.93%), KUMPULAN WANG
PERSARAAN (4.1%), KHAZANAH NASIONAL BERHAD (36.21%) and insurance companies and
investment funds.
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