AXIATA

>>>>

KUALA LUMPUR: Axiata Group Bhd posted net profit of RM63.89 million in the first quarter ended March 31, down 88.9% from the RM402.69 million a year ago.

The company said on May 19 the lower profit was mainly due to the foreign exchange loss of RM216.2 million in 1Q compared with RM42.4 million foreign exchange gains a year ago.
“The drop was also attributed to the higher finance cost in the current quarter by RM166.7 million predominantly arising from the amount owing to Telekom Malaysia and loans for the Idea Cellular Ltd (Idea) acquisition amounting to RM112.4 million.

“Normalising these factors, the group’s profit after tax is RM345 million, which is 18.3% lower quarter on quarter,” it added.

Axiata said the group’s overall performance of current year quarter was also affected by the negative contribution from Dialog and higher share of loss from jointly controlled entity.

Axiata said 1Q revenue was higher at RM2.86 billion, up 5.3% from RM2.72 billion a year ago due to higher contribution from Celcom and TM International (Bangladesh) Ltd.

Profit before tax was RM191.21 million versus RM638.48 million. Earnings per share were two sen compared with 11 sen a year ago.

On the outlook, Axiata said the macro backdrop for 2009 was one of weakening economies and uncertainty, hence the group would adopt a prudent approach focusing on cost management whilst continue to lay the foundation towards achieving its long term aspiration of becoming a regional champion.

It added the group would continue to have a strong focus on continued operational efficiencies at the major subsidiaries whilst preserving the momentum of sequential improvements.

<<<<

Wow! AXIATA Quarter report out d.. what will happen tomorrow??

My view is simple, i had entered AXIATA when she still under the name of TMI at RM3.06 5 lots and 2.75 5 lots around end of Feb and early of Mar 09. PE at tht time is around 9+ (if i not mistaken ^V^!).

Unfortunately, price drop until 2.5+ and follow by right issues. i decided to keep it and receive all the right issue. I holding it because it have CELCOM and Gov will look after her, some more during that timewe are going to change the PM, for seen gov stock will have some flying color performance.

My Avg price after right issues become RM1.93.

My thinking is right issues is mainly to save the fire from TM bond. so it is planned for that and it should able to pay back all to T, then i will be more confortable when AXIATA release from the tight bond stress.

So now, she keep on going up by following the small bull started on end of Mar and the 1st Q report is out.

My next move ==> since i have 20% profit on hand, i will start to sell it based on the performance in comming 2 weeks. My main concern here is the high PE! god, 41.59% with today closing price 2.32!! any how, today highest pick is 2.38, i believe that it can go up to 2.4+ and my TP sold in stage with anything >2.42..

Lets see ^V^!

Soli for this back hand info, i did not consider this under my capital investment, i doing this because i commited to my gf to double up her capital in 1 year so that she have enough money for europe trip.. haha funny ya!! all the investment under my capital have not make profit as much as AXIATA... really sian ^V^!!