KLCI Stock - MAXIS / 6012 - 2011 Quarter 4

MAXIS BERHAD



Company Description

MAXIS BERHAD is a mobile communications service provider in Malaysia. The Company operates in three segments: mobile services, fixed line services and international gateway services. The Company operates its postpaid mobile service under the maxis brand and its prepaid mobile service under the HOTLiNK brand. The Company's fixed line services comprise a suite of voice services, data services, Internet protocol (IP) and managed services to consumers and business customers. Its international gateway services comprise services to international telecommunications carriers for termination of traffic into Malaysia, services to send its own international traffic abroad and bandwidth leasing services. On October 1, 2009, the Company acquired Maxis Mobile Services Sdn Bhd, Maxis Broadband Sdn Bhd, Maxis International Sdn Bhd, Maxis Mobile Sdn Bhd, Maxis Collections Sdn Bhd and Maxis Multimedia Sdn Bhd, and 75% interest in Advanced Wireless Technologies Sdn Bhd.

Company Info

Listing Date	2009-11-19
IPO Price	5.0
Market Capital (Capital Size)	45,750,000,000 (Very Large)
Par Value	RM 0.10
Board	Main
Sector	Trading/Services
Major Industry	Telecommunication
Sub Industry	Mobile Communication & Network Services
Website	http://www.maxis.com.my/

My Analysis

Forecast P/E now	(6.1-0.4)/0.302 = 18.87 (High)
Target Price	5.13+0.4 = 5.53 (PE 17.0, EPS 0.302, DPS 0.4)
Decision	BUY if for dividend
Comment	Revenue increased 0.9% and was third consecutive quarter increasing but lower than preceding year corresponding quarter 1.9%, eps increased 67.6% and also higher than preceding year corresponding quarter 47.6%, cash generated from operating enough to cover financing expenses hence increased borrowing and spent 6.7% of Group cash to cover other expenses, operating margin decreasing, better liquidity ratio but still at weak level now, lower gearing ratio but still at high level now, debt ratio decreasing, higher payables repayment period but still supported by higher revenue, benefit from most segment growth
First Support Price	6.0
Second Support Price	5.8
Risk Rating	MODERATE

Research House

AMMB Target Price	5.49 (2011-03-01)
JF APEX Target Price	6.15 (2011-03-01)
TA Target Price	6.1 (2011-03-01)
RHB Target Price	5.9 (2012-01-06)
CIMB Target Price	5.7 (2012-02-27)
HLG Target Price	5.93 (2012-02-27)
HwangDBS Target Price	6.6 (2012-02-27)
Maybank Target Price	5.7 (2012-02-27)
MIDF Target Price	5.6 (2012-02-27)
OSK Target Price	5.5 (2012-02-27)
Kenanga Target Price	5.8 (2012-03-28)
ECM Target Price	5.69 (2012-04-25)

Accounting Ratio

Return on Equity	31.24%
Dividend Yield	5.25%
Gross Profit Margin	68.34%
Operating Profit Margin	35.10%
Net Profit Margin	33.55%
Tax Rate	-
Asset Turnover	0.4891
Net Asset Value Per Share	1.08
Net Tangible Asset per share	-0.4
Price/Net Tangible Asset Per Share	-14.98
Cash Per Share	0.11
Liquidity Current Ratio	0.4186
Liquidity Quick Ratio	0.3935
Liquidity Cash Ratio	0.1911
Gearing Debt to Equity Ratio	1.225
Gearing Debt to Asset Ratio	0.5504
Working capital per thousand Ringgit sale	-29.0%
Days to sell the inventory	15
Days to collect the receivables	36
Days to pay the payables	377

Technical Analysis

SMA 20	6.112 (Uptrend 105 days)
SMA 50	5.989 (Uptrend)
SMA 100	5.734 (Uptrend)
SMA 200	5.449 (Uptrend)
MACD (26d/12d)	0.032031 ( 0.002306 )
Signal (9)	0.045685 ( 0.003414 )
MACD Histogram	0.013654 (Bearish trend 12 days)

My notes based on 2011 quarter 4 report (number in '000):-
- Higher PAT largely due to the recognition of last mile broadband tax incentive

- Higher revenue and pbt than FY11Q3 due to growth from all segment

- Higher revenue in Mobile Services segment due to higher postpaid revenue and wireless broadband revenue, partially offset by drop in prepaid revenue however lower pbt due to higher operating expenses driven by higher marketing expenses, information technology expenses and higher allowance for doubtful debts

- Higher revenue and pbt in Enterprise Fixed Services segment due to increases in leaseline, internet and transmission via satellite (VSAT) offset by lower voice revenue and lower repairs and maintenance expenses

- Higher revenue in International Gateway Services segment due to higher hubbing revenue and international inbound revenue but lower pbt mainly due to lower margin from change in traffic mix

- Lower pbt in Home Services segment mainly due to start-up expenses coupled with higher advertising and promotional activities relating to Fibre to the Home (FTTH) services

- Estimate next 4Q eps after 2011 Q4 result announced = 8088000*0.28/7500000 = 0.302, estimate PE on current price 6.1 = 18.87(DPS 0.4)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.3164, estimate highest/lowest PE = 17.89/15.68 (DPS 0.4)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.3164, estimate highest/lowest PE = 16.53/15.3 (DPS 0.32)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0719*4*1.1 = 0.3164, estimate highest/lowest PE = 16.5/15.3 (DPS 0.32)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0813*4*1.05 = 0.3415, estimate highest/lowest PE = 15.72/14.58 (DPS 0.32)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.075*4*1.05 = 0.315, estimate highest/lowest PE = 16.41/15.65 (DPS 0.32)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0736*4*1.05 = 0.3091, estimate highest/lowest PE = 16.66/15.92 (DPS 0.32)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.328*0.9 = 0.2952, estimate highest/lowest PE = 17.68/16.46 (DPS 0.32)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.082*4 = 0.328, estimate highest/lowest PE = 16.07/14.82 (DPS 0.24)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.082*4 = 0.328, estimate highest/lowest PE = 16.1/15.52 (DPS 0.24)

MAXIS latest news (English)

MAXIS latest news (Chinese)



Financial Quarter Summary

a_date	year	qrt	h_price	l_price	div	roe	c_roe	rev	c_rev	pbt	c_pbt	prof	c_prof	eps	c_eps	asset	liab	mino	equi	cfo	cfi	cff	cash	fcf	net	final	share	c_share	m_cap	date	gros_m	oper_m	prof_m	vat	asset_t	pe	navps	ntaps	p/ntaps	cps	l_cur	l_qui	l_cash	g_de	g_da	avg_w	inv_d	rec_d	pay_d
2012-02-24	2011	4	N/A	N/A	0.08	11.13%	31.24%	2265000	8800000	760000	3004000	900000	2527000	0.1200	0.3369	17991000	9903000	4000	8088000	3712000	1166000	2606000	898000	2546000	60000	838000	7500000	7500000	44925000	2011-12-31	68.34%	35.10%	33.55%	-	0.4891	17.778	1.08	-0.4	-14.98	0.11	0.4186	0.3935	0.1911	1.225	0.5504	-29.0%	15	36	377
2011-11-30	2011	3	6.06	5.36	0.08	6.93%	20.99%	2244000	6535000	746000	2244000	537000	1627000	0.0716	0.2169	17969000	10217000	3000	7752000	2735000	794000	1923000	898000	1941000	18000	916000	7500000	7500000	41250000	2011-09-30	68.49%	36.27%	33.24%	27.88%	0.4922	-	1.03	-0.44	-12.5	0.12	0.3329	0.3092	0.1635	1.3185	0.5686	-42.2%	17	34	357
2011-08-25	2011	2	5.55	5.16	0.08	6.88%	13.62%	2158000	4291000	757000	1498000	551000	1090000	0.0735	0.1453	18653000	10649000	2000	8004000	1774000	538000	647000	898000	1236000	589000	1487000	7500000	7500000	40650000	2011-06-30	69.83%	37.91%	35.08%	27.08%	0.4727	-	1.07	-0.41	-13.22	0.2	0.406	0.3711	0.2389	1.3308	0.5709	-41.9%	28	33	360
2011-05-31	2011	1	5.54	5.16	0.08	6.26%	6.26%	2133000	2133000	741000	741000	539000	539000	0.0719	0.0719	18584000	9970000	1000	8614000	903000	284000	204000	898000	619000	415000	1313000	7500000	7500000	40650000	2011-03-31	67.74%	37.74%	34.74%	27.13%	0.4762	-	1.15	-0.32	-16.94	0.18	0.7507	0.6775	0.4002	1.1576	0.5365	-9.2%	30	36	374
2011-02-28	2010	4	5.69	5.3	0.08	7.04%	26.48%	2310000	8869000	832000	3132000	610000	2295000	0.0813	0.3060	18225000	9559000	-	8666000	4091000	1455000	2930000	1192000	2636000	294000	898000	7500000	7500000	40725000	2010-12-31	66.32%	38.40%	36.02%	26.68%	0.4866	17.7451	1.16	-0.31	-17.52	0.12	0.6329	0.5685	0.2702	1.103	0.5245	-13.8%	26	39	389
2010-11-30	2010	3	5.49	5.25	0.08	6.93%	19.42%	2216000	6559000	815000	2300000	601000	1685000	0.0801	0.2247	17705000	9028000	-	8677000	2974000	941000	2260000	1191000	2033000	227000	964000	7500000	7500000	39675000	2010-09-30	68.32%	39.08%	36.78%	26.26%	0.4953	-	1.16	-0.31	-17.06	0.13	0.6176	0.5685	0.3197	1.0405	0.5099	-13.1%	19	31	339
2010-08-30	2010	2	5.47	5.24	0.08	6.11%	12.46%	2191000	4343000	720000	1485000	532000	1084000	0.0709	0.1445	17503000	8801000	-	8702000	1862000	468000	1679000	1192000	1394000	285000	907000	7500000	7500000	40350000	2010-06-30	65.27%	35.37%	32.86%	26.11%	0.4792	-	1.16	-0.31	-17.35	0.12	0.5868	0.5348	0.2791	1.0114	0.5028	-16.0%	19	36	291
2010-05-31	2010	1	5.54	5.18	0.08	6.14%	6.14%	2152000	2152000	765000	765000	552000	552000	0.0736	0.0736	17309000	8321000	-	8988000	798000	154000	1019000	1192000	644000	375000	817000	7500000	7500000	39150000	2010-03-31	66.73%	37.87%	35.55%	27.84%	0.4613	-	1.2	-0.27	-19.33	0.11	0.6456	0.5994	0.297	0.9258	0.4807	-12.2%	12	38	222
2010-02-25	2009	4	5.51	5.1	0.06	5.62%	17.64%	2211000	7611000	695000	1939000	503000	1578000	0.0671	0.2725	17798000	8853000	-	8945000	1245000	603000	1853000	1197000	1848000	5000	1192000	7500000	5790000	41400000	2009-12-31	67.44%	33.47%	31.43%	27.63%	0.4276	20.254	1.54	-0.36	-15.33	0.16	0.6439	0.6034	0.36	0.9897	0.4974	-15.5%	11	38	203
2009-11-30	2009	3	5.53	5.3	0.06	104.44%	97.87%	1833000	5400000	1304000	1270000	1175000	1101000	0.1567	0.1468	8195000	7070000	-	1125000	76000	66000	480000	1197000	142000	622000	575000	7500000	7500000	40875000	2009-09-30	45.12%	76.81%	71.14%	9.89%	0.8903	-	0.15	0.14	38.93	0.16	0.6727	0.649	0.2244	6.2844	0.8627	-23.7%	9	112	345
N/A	2009	2	N/A	N/A	-	N/A	N/A	1789000	3567000	17000	34000	32000	74000	0.0061	0.0142	N/A	N/A	-	N/A	56000	49000	N/A	1197000	7000	7000	1204000	5213000	5213000	N/A	2009-06-30	19.73%	3.35%	0.95%	-	N/A	-	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-	N/A	N/A
N/A	2009	1	N/A	N/A	-	N/A	N/A	1778000	1778000	17000	17000	42000	42000	0.0081	0.0081	N/A	N/A	-	N/A	29000	12000	N/A	1197000	41000	41000	1156000	5213000	5213000	N/A	2009-03-31	19.85%	4.72%	0.96%	-	N/A	-	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-	N/A	N/A
N/A	2008	4	N/A	N/A	-	70.00%	505.00%	1896000	7184000	53000	5000	14000	101000	0.0027	0.0194	3140000	3120000	-	20000	1584000	756000	N/A	369000	828000	828000	1197000	5213000	5213000	26065000	2008-12-31	23.95%	8.86%	2.80%	73.58%	1.2787	-	N/A	N/A	N/A	0.23	0.6409	0.6331	0.445	156.0	0.9936	-24.1%	4	43	406
N/A	2008	3	N/A	N/A	-	N/A	N/A	2119000	6187000	692000	2412000	480000	1740000	0.0640	0.2320	N/A	N/A	-	N/A	1641000	345000	249000	721000	1296000	1047000	1768000	7500000	7500000	37500000	2008-09-30	68.19%	32.00%	32.66%	30.64%	N/A	-	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-	N/A	N/A

Financial Quarter Balance Sheet

year	qrt	Deferred tax assets (A-0)	Derivative financial assets (A-0)	Intangible assets (A-0)	Investment in associated companies (A-0)	Loan receivables (A-0)	Prepaid lease payments (A-0)	Property, plant and equipment (A-0)	Amount due from associated companies (A-1)	Cash and cash equivalents (A-1)	Current tax assets (A-1)	Inventories (A-1)	Other receivables, deposits and prepayments (A-1)	Deferred tax liabilities (L-0)	Derivative financial liabilities (L-0)	Loan from a related party (L-0)	Loan from immediate holding company (L-0)	Loans & borrowings (L-0)	Other long-term provisions (L-0)	Payables and accruals (L-0)	Amounts due to fellow subsidiaries (L-1)	Amounts due to Group Companies (L-1)	Amounts due to related parties (L-1)	Current tax liabilities (L-1)	Dividend payable (L-1)	Loan from a related party (L-1)	Loans & borrowings (L-1)	Payables and accruals (L-1)	Provision for liabilities (L-1)	Minority interest (M-1)
2011	4	121000	3000	11060000	-	-	-	4971000	17000	838000	13000	110000	858000	551000	366000	36000	-	4409000	94000	61000	-	-	23000	6000	-	-	1464000	2828000	65000	4000
2011	3	132000	-	11036000	-	-	-	4936000	12000	916000	3000	133000	801000	569000	376000	35000	-	3432000	136000	67000	-	-	20000	327000	-	-	2460000	2742000	53000	3000
2011	2	100000	5000	11046000	-	-	-	4975000	11000	1487000	25000	217000	787000	573000	365000	34000	-	3259000	134000	60000	-	-	22000	342000	600000	-	2461000	2757000	42000	2000
2011	1	82000	-	11034000	-	-	-	5005000	12000	1313000	46000	240000	852000	599000	395000	34000	-	5480000	131000	50000	-	-	22000	233000	-	-	13000	2980000	33000	1000
2010	4	96000	-	11019000	-	-	-	5007000	14000	898000	41000	214000	936000	620000	349000	33000	-	5061000	127000	46000	1000	-	43000	100000	-	-	13000	3106000	60000	-
2010	3	78000	-	11012000	-	-	-	4753000	12000	964000	-	148000	738000	466000	327000	-	-	5060000	128000	32000	-	-	25000	220000	-	33000	15000	2668000	54000	-
2010	2	70000	-	11007000	-	-	-	4519000	17000	907000	-	169000	814000	373000	181000	-	-	4869000	122000	6000	1000	-	28000	367000	225000	32000	21000	2526000	50000	-
2010	1	83000	-	10999000	-	-	-	4451000	12000	817000	1000	127000	819000	390000	169000	-	-	4884000	120000	7000	2000	-	24000	296000	-	32000	21000	2335000	41000	-
2009	4	86000	-	11019000	-	-	-	4561000	10000	1192000	6000	134000	790000	406000	-	-	4992000	21000	116000	7000	1000	38000	19000	198000	450000	31000	22000	2496000	56000	-
2009	3	99000	-	111000	-	174000	10000	4246000	1449000	1186000	-	125000	795000	341000	-	-	-	1289000	147000	8000	-	3013000	23000	217000	-	-	4000	1976000	52000	-
2008	4	99000	-	35000	1096000	-	-	186000	33000	1197000	36000	21000	437000	-	-	-	-	430000	-	-	1000	38000	45000	291000	-	30000	3000	2268000	14000	-

Financial Quarter Income Statement

year	qrt	Revenue	Income tax expense	Cost of sales	Finance/interest costs	Other income	Administrative/Operating expenses	Minority interest	Finance/interest income	Network operation costs	Share of net profit of jointly controlled entity	Other expenses
2011	4	2265000	141000	717000	45000	6000	458000	1000	10000	265000	-	36000
2011	3	2244000	208000	707000	77000	3000	435000	1000	9000	281000	-	10000
2011	2	2158000	205000	651000	73000	0	412000	1000	12000	242000	-	35000
2011	1	2133000	201000	688000	73000	5000	384000	1000	9000	245000	-	16000
2010	4	2310000	222000	778000	64000	28000	406000	-	9000	250000	-	17000
2010	3	2216000	214000	702000	59000	3000	394000	-	8000	240000	-	17000
2010	2	2191000	188000	761000	62000	8000	395000	-	7000	245000	-	23000
2010	1	2152000	213000	716000	55000	2000	370000	-	5000	243000	-	10000
2009	4	2211000	192000	720000	49000	1000	390000	-	4000	282000	0	80000
2009	3	1833000	129000	1006000	7000	876000	284000	-	3000	-	100000	11000
2009	2	1789000	15000	1436000	8000	-	281000	-	6000	-	75000	12000
2009	1	1778000	25000	1425000	9000	-	251000	-	8000	-	100000	18000
2008	4	1896000	39000	1442000	8000	-	273000	-	9000	-	116000	13000
2008	3	2119000	212000	674000	7000	1000	352000	-	21000	408000	-	8000

Financial Quarter Segments Revenue

year	qrt	Mobile Services	Enterprise fixed services	International gateway services	Home services
2011	4	2170000	46000	45000	4000
2011	3	2163000	44000	33000	4000
2011	2	2075000	48000	30000	5000
2011	1	2038000	43000	48000	4000
2010	4	2152000	46000	108000	4000
2010	3	2063000	43000	106000	4000
2010	2	2041000	40000	105000	5000
2010	1	2023000	43000	86000	-
2009	4	2075000	44000	92000	-
2009	3	1833000	-	-	-
2009	2	1789000	-	-	-
2009	1	1778000	-	-	-
2008	4	1896000	-	-	-

Financial Quarter Segments Profit

year	qrt	Others	Mobile Services	Enterprise fixed services	International gateway services	Home services
2011	4	7000	798000	9000	3000	22000
2011	3	1000	807000	4000	5000	3000
2011	2	3000	816000	13000	9000	17000
2011	1	2000	814000	1000	5000	15000
2010	4	3000	855000	12000	-	17000
2010	3	2000	857000	2000	11000	2000
2010	2	1000	768000	13000	3000	2000
2010	1	-	802000	12000	1000	-
2009	4	57000	763000	17000	17000	-
2009	3	-	1408000	-	-	-
2009	2	-	60000	-	-	-
2009	1	-	84000	-	-	-
2008	4	-	168000	-	-	-

Short form reference
a_date = announcement date, yr = financial year end, qrt = quarter
h_price = stock highest price during the quarter, l_price = stock lowest price during the quarter
div = dividend recommend or declare in the quarter, roe = return on equity
c_roe = cumulative of return on equity during the financial year
rev = revenue in the current quarter, c_rev = cumulative of revenue during the financial year
pbt = profit before tax in the current quarter, c_pbt = cumulative of profit before tax during the financial year
eps = earnings per share in the current quarter, c_eps = cumulative of earnings per share during the financial year
asset = total asset, liab = total liability, mino = minority interest, equi = total equity
cfo = net cash flow from operating activities, cfi = net cash flow from investing activities
cff = net cash flow from financing activities, cash = cash and cash equivalents as at beginning of financial year
final = cash and cash equivalents as at current financial period ended
share = diluted/basic weighted average number of ordinary shares
c_share = cumulative of diluted/basic weighted average number of ordinary shares during the financial year
m_cap = market capital at announcement date of quarterly report, date = current financial period ended date
prof_m = profit margin, vat = income tax rate, pe = price earning per share ratio of recent four quarter
navps = net asset value per share, ntaps = net tangible asset per share, cps = cash per share
l_cur = liquidity current ratio, l_qui = liquidity quick ratio, l_cash = liquidity cash ratio
g_de = gearing debt to equity ratio, g_da = gearing debt to assets ratio
avg_w = working capital per thousand Ringgit sale
inv_d = days to sell the inventory, rec_d = days to collect the receivables
pay_d = days to pay the payables

CURRENT

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●ANNUAL REPORTS

HISTORICAL

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