1 June 2011 : SUNCITY - Merger Update 2 // Axiata 1QFY11 Review

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AXIATA 1QFY2011 Review - Victim of Strong RM

分析 : 业绩报告并没有大惊喜 ， 利润保持稳定上升 未来数据业务将会成为成长的关键 强势马币导至盈利成长减少 (y-o-y 8% --->3.3%）又是一个马币受害者 Q.Q . 国外业务持续稳健上升 除了印尼XL因为市场强烈竞争 公司将从新定位市场的strategy.

• 1QFY11 core net profit were in-line with expectations

• Group revenue rose by +3.3% y-o-y, driven by Celcom in Malaysia and Robi in Bangladesh. Revenue growth in RM terms were impacted by the stronger RM against the local currencies (would have grown at +8% y-o-y)

• Net profit grew by a stronger +18.8% y-o-y, helped by lower interest expenses

•  Management maintained its 2011 guidance of 10% revenue growth, 10.3% EBITDA growth, 16.5% ROIC 

• Target price of RM6.08 (ECM) / RM5.88 (OSK188)

Key financial data 

FYE 31 Dec            FY10 FY11F FY12F FY13F

Adj EPS (sen)           30.9  37.6     43.0      47.8 

Adj P/E (x)                16.2  13.3    11.6      10.5 

Net DPS (sen)           10.0  11.3    12.9      14.3 

Div yield (%)              2.0    2.3      2.6        2.9 

BVPS (RM)              2.22   2.48    2.78      2.22 

P/B (x)                      2.3     2.0      1.8         2.3 

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Suncity / Sunway Merger Deal Update 1/6/2011

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Source : http://cktan1984.blogspot.com/ 

                              5.74 % difference to the offer price of 1.29 for Suncity-WA

                              4.90 % difference to the offer price of 1.50 for Sunway-WC

• Sunway Holdings Bhd and Sunway City Bhd (SunCity) -  RM4.5bil in cash and share swap.

• The exercise entails Newco offering RM2.60 per Sunway share, RM1.50 per Sunway warrant and RM5.10 per SunCity share and RM1.29 per SunCity warrant.

•  issuing new warrants for free to all shareholders of SunCity and Sunway on the basis of one Newco warrant for every five Newco shares.

• “This transaction will see three key advantages, namely size, synergies and branding,”

• “The immediate and obvious advantage of this merger is a bigger and better capitalised entity - a potential market capitalisation of over RM3.5bil,” 

• The merged entity would have combined total revenue of more than RM3.3bil.

Key financial data 

                                              FY09  FY10   FY11F    FY12F

Adj EPS (sen)                         45.3    34.5       40.0        48.4

Adj P/E (x)                             16.7    14.6        12.6        10.4

Net DPS (sen)                         9.8       23.3        9.0        11.3

Div yield (%)                           1.9        4.6        1.8          2.2

BVPS (RM)                            4.62     5.45       5.86       6.24

P/B (x)                                    1.1        0.9        0.9          0.8

Financial Ratios (MYR)

Period EPS NAV Price Earnings Ratio (PER) Net Earnings Margin Revenue Growth Net Earnings Growth Return On Asset (ROA) Return On Equity (ROE) Current Ratio

Full Year Dec 2010 $1.14863 $5.4468 4.40 48.808 % n.a. n.a. 11.841 % 21.088 % 1.621

Full Year Jun 2009 $0.28798 $3.8232 17.54 12.382 % -17.777 % n.a. 2.610 % 7.532 % 1.212

Full Year Jun 2008 $0.56786 $3.5860 8.89 20.076 % 15.306 % 83.740 % 5.116 % 15.835 % 3.507

Full Year Jun 2007 $0.30906 $3.0353 16.34 12.598 % -27.509 % n.a. 3.447 % 10.182 % 1.510

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