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FLOWS
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Wednesday, 7 November, 2012
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BUY
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Genting, MRCB,
AirAsia
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SELL
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IJM, KLCCP, Gamuda
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Stock Alert
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STOCK
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PRICE
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Immediate Support
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2 months high
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Retracement from high (%)
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FY13F
PE(x)
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FY 13F
Div Yield (%)
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P/B(x)
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TM (5863)
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RM5.69
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RM5.64
|
RM6.40
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-11.09%
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22.8
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4.44
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3.12
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Recently
been linked with an acquisition for p1 from Green Packet which would open up
wireless broadband solutions to TM. It continues to have the largest market
share in fixed line broadband as the first mover with Unifi and has increased
visibility of its IPTV offering HyppTV to potentially grow ARPU. It is
apparently bidding for EPL rights for the next three years which could cost
up to RM1bn, but would be a significant game changer. BUY on current
weakness, immediate resistance RM6.00
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BUY
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AXIATA (6888)
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RM6.02
|
RM5.92
|
RM6.75
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-10.81%
|
17.20
|
3.94
|
2.39
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The
group continues to face challenging regulatory issues particularly in the
Indian subcontinent. The recent strength of the ringgit will also dampen 3Q
numbers due at the end of the month. However on a longer term basis the
possibility of a listing of Celcom and on going talks of selling their XL
Towers may provide additional cash flow to improve payout. Hold ahead of 3Q
numbers due on the 28th Nov.
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HOLD
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DIGI (6947)
|
RM5.09
|
RM5.05
|
RM5.57
|
-8.62%
|
22.89
|
4.88
|
34.33
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In
an effort to curtail its stagnating top line growth the company has embarked
on several new initiatives including collaboration with Celcom to site share
joint fibre build up of 1000km of fibre cable to help push its data growth
strategy. It has been traditionally the most creative with its capital
management and could once again be on the front foot towards a business trust
structure to increase future payout. HOLD
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HOLD
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MAXIS (6012)
|
RM6.74
|
RM6.71
|
RM7.10
|
-5.07%
|
21.5
|
5.63
|
7.29
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Its
current aggressive marketing of its fibre broadband offering at attractive
subsidised rates will eat into the group’s margin. It has also entered a 10
year partnership with Astro to be its IPTV service provider. For investors
looking for a bond like return, it offers its highest yield at 5.6% based on
its stated payout of 40 sen. BUY
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BUY
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Wednesday, November 7, 2012
Morning Call | 7 Nov 2012
