AXIATA (6888) : Public Invest Research keeps Neutral on Axiata
KUALA LUMPUR: Public Invest Research is maintaining its Neutral call on Axiata Group with an unchanged target price of RM7.10.
“Despite our Neutral call on Axiata, its current share price offers the most upside potential to our target price among our telco stocks coverage,” said the research house on Friday.
Public Invest Research said Axiata is its current preferred stock pick in the sector as it believes that the telco will benefit from regional growth story as well as better 2015 performance from Celcom (post IT transformation) and XL (post Axis integration).
To recap, Axiata subsidiary, Axiata Digital Advertising (ADA), had signed a subscription and shareholders agreement with Adknowledge International (ADK) and Adknowledge Asia Pacific (AAP) to subscribe for 80% equity stake in AAP for up to US$9mil cash.
AAP will enhance Axiata’s capability in digital advertising services and enable synergistic opportunities for its mobile services. However, the acquisition will not have any material financial effect on the group.
ADK is a multi-channel global digital marketing company based in Missouri, US. It partners with agencies, brands and publishers through digital video, social media, apps/mobile, email and other contents. ADK?s registered trademarks include AdParlor, AdBistro, AdStation, TriVu Media and Giant Media.
AAP is a unit of ADK and has been designated as the joint venture company between ADA and ADK to pursue digital advertising in the Asia-Pacific region. AAP is incorporated and registered in Singapore.
The research house said Axiata hopes its partnership with ADK (via acquisition of equity stake in AAP) will enable the group to ride on the vibrant digital marketing space in Asia Pacific which provides significant growth opportunities.
“Axiata has the necessary mobile & digital services and substantial subscriber base in Asean and South Asia to reap synergies from the partnership.
“We are positive on the growth potential of the acquisition but are unable to quantify financials from the new venture at this juncture,” said Public Invest Research.
http://www.thestar.com.my
KUALA LUMPUR: Public Invest Research is maintaining its Neutral call on Axiata Group with an unchanged target price of RM7.10.
“Despite our Neutral call on Axiata, its current share price offers the most upside potential to our target price among our telco stocks coverage,” said the research house on Friday.
Public Invest Research said Axiata is its current preferred stock pick in the sector as it believes that the telco will benefit from regional growth story as well as better 2015 performance from Celcom (post IT transformation) and XL (post Axis integration).
To recap, Axiata subsidiary, Axiata Digital Advertising (ADA), had signed a subscription and shareholders agreement with Adknowledge International (ADK) and Adknowledge Asia Pacific (AAP) to subscribe for 80% equity stake in AAP for up to US$9mil cash.
AAP will enhance Axiata’s capability in digital advertising services and enable synergistic opportunities for its mobile services. However, the acquisition will not have any material financial effect on the group.
ADK is a multi-channel global digital marketing company based in Missouri, US. It partners with agencies, brands and publishers through digital video, social media, apps/mobile, email and other contents. ADK?s registered trademarks include AdParlor, AdBistro, AdStation, TriVu Media and Giant Media.
AAP is a unit of ADK and has been designated as the joint venture company between ADA and ADK to pursue digital advertising in the Asia-Pacific region. AAP is incorporated and registered in Singapore.
The research house said Axiata hopes its partnership with ADK (via acquisition of equity stake in AAP) will enable the group to ride on the vibrant digital marketing space in Asia Pacific which provides significant growth opportunities.
“Axiata has the necessary mobile & digital services and substantial subscriber base in Asean and South Asia to reap synergies from the partnership.
“We are positive on the growth potential of the acquisition but are unable to quantify financials from the new venture at this juncture,” said Public Invest Research.
http://www.thestar.com.my
