At 11.56am, it was down 20 sen to RM6.30. There were 518,400 shares done at prices ranging from RM6.26 to RM6.40.
The KLCI fell 2.84 points or 0.16% to 1,752.74. Turnover was 1.05 billion shares valued at RM513.60mil. There were 243 gainers, 425 losers and 334 counters unchanged.
UOB Kay Hian Malaysia Research had in a recent report said Telekom’s mass market services (Streamyx, webe and UniFi) will be consolidated into a single brand under UniFi.
This bundled service together with LTE network expansion can help boost the webe subscriber base in the next 2-3 years (EBITDA breakeven between three and five years).
“Meanwhile, the underlying strength of Telekom’s broadband business will help support operating cash flow of RM3.3bil to RM3.8bil (7.5 times enterprise value/earnings before interest, tax, depreciation and amortisation). Maintain Hold with a discounted cashflow based target price of RM6.05. Entry price: RM5.50,” it said.
UOB Kay Hian Research sees opportunities for Telekom to arrest sliding voice revenue and simultaneously grow average revenue per user (ARPUs) by offering a complete suite of services via its quad play asset.
“We are cautiously optimistic on the group as: a) initial webe subscriber growth appears encouraging, b) better-than-expected opex discipline – as we had initially expected burgeoning marketing and staff spend on driving Telekom Malaysia’s wireless footprint, and c) adequate cashflow to maintain its dividend mandate to pay RM700mil or up to 90% of Telekom’s core net profit, whichever is higher,” it said.