KUALA LUMPUR (Feb 17): UOB Kay Hian Malaysia Research is maintaining a Hold call on Maxis Bhd with a discounted cashflow-based target price of RM5.25 versus the last done price of RM5.77.
It said on Friday the stock price was supported by a 7% net yield.
Maxis had on Thursday announced plans to issue Islamic medium-term notes with a nominal value of up to RM2.45 billion based on the sukuk musharakah principle for capital expenditure and working capital purposes.
The proposed unrated sukuk, which would have a tenure of up to 30 years, would also be used for general funding requirements as well as general corporate purposes of the company and its subsidiaries.
UOB Kay Hian Research said the coupon rate for the debt notes will be determined later as the debt will be issued via private placement, bought deal or book-building basis.
“As part of the disclosure requirement for this debt, Maxis announced that it had been approved by the Ministry of Finance in November 2011 for a total of RM320 million tax credit - RM233 million for prior years and RM97 million for nine-months 2011 – for its investments in last mile broadband,” it said.
The research house said the entire amount would be recognised in its 4Q11 results, representing 15% of its current forecast net profit, but will be deemed as a lumpy item.
“Besides, this has less than 1% (4.3 sen/share) impact on our valuation for Maxis,” it said.
It said on Friday the stock price was supported by a 7% net yield.
Maxis had on Thursday announced plans to issue Islamic medium-term notes with a nominal value of up to RM2.45 billion based on the sukuk musharakah principle for capital expenditure and working capital purposes.
The proposed unrated sukuk, which would have a tenure of up to 30 years, would also be used for general funding requirements as well as general corporate purposes of the company and its subsidiaries.
UOB Kay Hian Research said the coupon rate for the debt notes will be determined later as the debt will be issued via private placement, bought deal or book-building basis.
“As part of the disclosure requirement for this debt, Maxis announced that it had been approved by the Ministry of Finance in November 2011 for a total of RM320 million tax credit - RM233 million for prior years and RM97 million for nine-months 2011 – for its investments in last mile broadband,” it said.
The research house said the entire amount would be recognised in its 4Q11 results, representing 15% of its current forecast net profit, but will be deemed as a lumpy item.
“Besides, this has less than 1% (4.3 sen/share) impact on our valuation for Maxis,” it said.
