KUALA LUMPUR: CIMB Equities Research retains its Outperform call on TELEKOM MALAYSIA BHD [] with a sum-of-parts based target price of RM4.92 and is its top Malaysian telco pick.
It said on Wednesday, July 27 that the likely price catalysts include the strong take-up of Unifi, expectations of a special dividend and positive earnings surprises.
On Tuesday, TM announced that it sold off its remaining shares in Axiata. Including some shares which CIMB Research believed were sold in the open market, it estimated TM raised about RM500 million.
“We think TM will pay a special dividend this year with the proceeds from the sale,” it said.
Separately, at a luncheon we hosted with domestic investors, TM revealed that: 1) Unifi’s net adds continued to accelerate in July, and 2) it is negotiating with mobile operators to enable them to offload their data traffic onto TM’s extensive WiFi network.
Source: ECM libra, the edge
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