Maxis announced its final interim dividend of 5 sen per share, meeting full year forecast of 20 sen and translating into a yield of 3.2%. Due to its high gearing, we expect lower dividend of 16 sen for FY17 which translates into an unattractive yield of 2.5%.. Downgrade to SELL from HOLD with a lower target price of RM5.26 (from previous RM6.28) based on DDM. Despite improved profit margins, gearing and dividend remain a concern in our view.
Research, JF Apex Securities Bhd
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