KUALA LUMPUR (Feb 27): RHB Research Institute has upgraded Telekom Malaysia to Outperform but retained the fair value of RM5.85.
It said on Monday that TM’s 4Q core net profit of RM240 million (up 0.7% on-year; up 74.9% on-quarter) was above its but below consensus expectations.
“The key variance was lower-than-expected depreciation (-5.3% on-year; -7.7% on-quarter) due to extension of useful life on certain assets in line with industry practices,” it said.
RHB Research said as expected, TM declared a final single-tier dividend per share of 9.8 sen, bring FY11 DPS to 19.6 sen.
In addition, TM proposed a widely-anticipated 30 sen/share capital distribution (similar to FY10) payable in 3Q12.
“Fair value remains unchanged at RM5.85 based on 3.5% net yield assumption, and includes our assumption of another 30 sen capital distribution for FY12,” it said.
It said on Monday that TM’s 4Q core net profit of RM240 million (up 0.7% on-year; up 74.9% on-quarter) was above its but below consensus expectations.
“The key variance was lower-than-expected depreciation (-5.3% on-year; -7.7% on-quarter) due to extension of useful life on certain assets in line with industry practices,” it said.
RHB Research said as expected, TM declared a final single-tier dividend per share of 9.8 sen, bring FY11 DPS to 19.6 sen.
In addition, TM proposed a widely-anticipated 30 sen/share capital distribution (similar to FY10) payable in 3Q12.
“Fair value remains unchanged at RM5.85 based on 3.5% net yield assumption, and includes our assumption of another 30 sen capital distribution for FY12,” it said.
