KUCHING: Telekom Malaysia Bhd (TM) is tentatively scheduled to announce its first quarter 2012 (1Q12) results on May 30, according to recent news.
The research arm of Kenanga Investment Bank Bhd (Kenanga Research) noted that it expected TM to record RM2.34 billion in turnover with a net profit of RM137 million in 1Q12, underpinned by a higher retail segment contribution as a result of a strong Unifi take-up rates.
The company’s Unifi growth momentum did not appear to be slowing with about 347,000 sign-ups as of May 7, representing a strong take-up rate of 29 per cent, which translated to 1.2 million premises passed to date.
With the latest subscriber numbers, this showed that there was a strong improvement since Kenanga Research last updated the number, which stood at 305,000 then with a take-up rate of 26 per cent as of March 18.
“The Unifi subscriber number has continued to exceed our forecast as we only have a 291,000 and 345,000 target respectively as of 1Q12 and 2Q12. Hence, we see an upside revision in our numbers,” added the research firm.
On another note, the final dividend and proposed capital repayment had been approved during the company’s annual general meeting (AGM) and extraordinary general meeting (EGM). TM’s shareholders at the meetings had voted in favour of all the resolutions proposed, which included the final single tier dividend of 9.8 sen per share and capital repayment of RM1.07 billion, which translated to 30 sen per share.
“Post EGM, we understand that the proposed capital repayment is still subject to the approval and consent from the High Court and TM’s creditors and lenders. The final dividend is scheduled to go ex-entitlement on May 22, while the capital repayment is expected to be completed in 3Q12,” said the research firm.
TM’s retained earnings remained strong at RM2 billion even after it recent announced final dividend of 9.8 sen and its RM1.07 billion proposed capital repayment plan.
In addition the group also had reiterated its commitment to return excess cash to shareholders should there be no additional capital expenditure (capex) required by the company. In view of TM’s declining capex trend, the research firm believed TM was well capable to further reward shareholders on top of its total regular annual dividend of 19.6 sen.
“We are keeping our FY12 dividend forecast of 49.6 sen unchanged,” said Kenanga Research maintaining a fair value of RM5.52 per share.