Axiata Shares Rises As Earnings Meet Market Expectations

KUALA LUMPUR, Nov 29 (Bernama) -- Axiata Group Bhd’s shares rose 3.4 per cent early Friday after the company's earnings for the third quarter of the financial year 2024 (3Q FY2024), in line with market expectations.

At 10.20 am, Axiata's shares traded at RM2.42, up by eight sen, making it the top gainer among FBM KLCI constituents.

Kenanga Investment Bank Bhd responded positively to Axiata’s outlook, raising its FY2024–FY2025 earnings forecast by 11–10 per cent, however, it revised the target price downward by five per cent to RM2.60 factoring CelcomDigi Bhd’s updated valuation.

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RHB Investment Bank Bhd also expressed optimism about Axiata’s earnings recovery and balance sheet deleveraging, supported by macroeconomic tailwinds and continued operational improvements.

“The group’s net debt/earnings before interest, taxes, depreciation, and amortisation ratio is at its lowest in two years. This improving risk-reward profile is a key catalyst for our rating. We maintain a 'buy' call on the stock,” it noted.

Hong Leong Investment Bank Bhd also highlighted Axiata's long-term growth prospects following the CelcomDigi merger but flagged regulatory and economic risks, along with the challenges faced by Boost Bank in achieving profitability.

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“Other potential corporate exercises that may unlock values include tower assets and digital business listings,” it added.

Axiata achieved a significant turnaround in 3Q FY2024, reporting a net profit of RM976.67 million compared to a net loss of RM797.41 million in the same quarter last year.

However, revenue declined to RM5.32 billion from RM5.62 billion last year, mainly due to the depreciation of the Indonesian rupiah and Bangladeshi taka against the ringgit.

-- BERNAMA