Axiata Group: Regulatory Risks In The Spotlight

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About: Axiata Group Berhad (AXXTF)
by: The Value Pendulum
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The Value Pendulum
Deep Value, growth at reasonable price, contrarian, micro-cap
Summary

Axiata Group's overseas subsidiaries, Bangladesh's Robi and Nepal's Ncell, are facing regulatory issues in their respective markets.

The unlocking of the value of Axiata Group's 62.4% stake in independent tower company edotco was highlighted as a positive re-rating catalyst earlier, but a potential IPO could be delayed.

Network infrastructure sharing plans could help to ease concerns regarding higher-than-expected 5G-related capital expenditures going forward.

Axiata Group expects to meet three-quarters of its five-year RM5 billion cost savings target by end-FY2019, which is ahead of schedule.

Axiata Group trades at 5.3 times consensus forward FY2020 EV/EBITDA and offers a consensus forward FY2020 dividend yield of 2.7%.

Elevator Pitch

Malaysia-listed Axiata Group Berhad (OTCPK:AXXTF) [AXIATA:MK] is a regional telecommunications company which owns controlling stakes in market-leading mobile and fixed operators across Asia. Readers can refer to my recent article on