Axiata’s Shares Jump On Strong 1Q Net Profit, HLIB Upgrades To ‘Buy’
KUALA LUMPUR, May 29 (Bernama) -- Axiata Group Bhd’s shares rose in early trade after it reported more than a two-fold increase in net profit for the first quarter ended March 31, 2025 (1Q 2025).
Net profit jumped to RM159.8 million in 1Q 2025 from RM60.03 million in the same period a year earlier, driven by foreign exchange gains, lower depreciation and amortisation, and stronger contributions from CelcomDigi, the group said in a filing with Bursa Malaysia yesterday.
However, quarterly revenue fell to RM5.09 billion from RM5.74 billion, weighed down by weaker contributions from overseas operating companies, primarily due to foreign exchange translation losses as the ringgit strengthened against operating currencies.
At 9.05 am, Axiata rose three sen to RM2.10, with 401,100 shares traded.
Despite the weaker revenue, Hong Leong Investment Bank Bhd (HLIB) upgraded Axiata to a ‘buy’ from ‘hold’, raising the sum-of-the-parts-based target price to RM2.50. The investment bank views the potential monetisation of edotco as a key re-rating catalyst.
“While earnings are likely to remain lacklustre in the near term, we believe the market will respond positively to management’s efforts to unlock value across its telco portfolio and reinforce its balance sheet in the process.
“We have cut our financial year 2025–2027 earnings forecasts by 30 to 58 per cent, largely to reflect the deconsolidation and weaker contribution from XLSmart,” the bank said in a note.
-- BERNAMA