6 cent per share for now. Does that mean 1.26% dividend yield?
Maxis: A Dividend Surprise
KUALA LUMPUR, Dec 1 (Bernama) -- Maxis Bhd's maiden post listing interim dividend of six sen per share for the financial year ending Dec 31, 2009 was a pleasant surprise as the market expected that to happen only in the financial year of 2010, said OSK Investment Research.
The country's biggest mobile operator declared an interim single-tier tax exempt dividend of six sen per ordinary share for the year, payable on January 15 next year.
The company posted a higher net profit of 28 per cent year-on-year for the first nine months of 2009 and 1.0 percent year-on-year hike for the third quarter.
"Year-to-date, its earnings made up 70 per cent of our full-year forecast and 72 per cent of consensus," the research house said in its note here Tuesday.
Maxis's revenue also expanded by two per cent quarter-on-quarter, reversing the two consecutive quarters of contraction, fuelled by a recovery in mobile spending and the 3.0 per cent quarter-on-quarter increase in total subscribers.
"While management has not officially disclosed the number of iPhone users on its network, we gather that take up continued to be strong with a long list of customers waiting in line for fresh stocks to be delivered from Apple," OSK said.
Maxis added 18,000 mobile subscribers in the third quarter, behind Celcom's 55,000, for a cumulative base of 189,000 as at September.
OSK said that based on its projected free cash flow (FCF) for Maxis Group of RM2.3 billion and RM2.8 billion in the years 2009 and 2010, respectively, the research house estimated it could still return a further 30 sen per share without gearing up.
"We estimate FCF yields at 7.0-9.0 per cent for FY09-FY10, comfortably above the recurring net dividend yield of 4.9 per cent based on the dividend payout guidance of 75 per cent of net profit," it said.
ECM Libra Investment Research, meanwhile in a separate statement said it assumed a final dividend of the same quantum to be paid for the fourth quarter of 2009 which would imply a yield of 2.2 per cent for the year.
"We are forecasting Maxis to yield 5.3 per cent in FY10 based on a payout consumption of 85 per cent," it said.
On the other hand, Kenanga Research said Maxis's defensive earnings and high cash generating capability will continue to attract yield seekers.
It said it has increased its discounted cash flow forecast for the year to 14.2 sen from 8.2 sen, and also a higher payout for 2010 and 2011 to 90 per cent from 80 per cent.
At 2.30pm Tuesday, Maxis's share was down six sen at RM5.39.
-- BERNAMA
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