KUALA LUMPUR: AmInvestment Research is maintaining its Buy call on Axiata Group with unchanged forecasts and sum-of-parts-based fair value of RM4.90 a share.
The research house said on Friday this implies an FY20F enterprise value/ earnings before interest, tax, depreciation and amortisation (EV/Ebitda) of 5.5 times, which is one standard deviation below its three-year average of 6.2 times.
Axiata and the group’s unit Celcom Axiata together with edotco Group and Axiata Digital launched a RM150mil fund for micro small-medium enterprises (SMEs) as part of their novel coronavirus (Covid-19) assistance programme, supported by an initial RM20mil contribution from the Ministry of Finance.
Under the plan, Axiata Digital will offer syariah-compliant micro-financing on its Aspirasi digital platform in the range of RM1,000 to RM10,000.
This will be on favourable terms such as suspended repayment requirements and concessional interest rates to reach an estimated 150K micro-SMEs within Boost, Aspirasi and the Celcom ecosystem, together with its e-commerce and other telcos/e-wallets.
The programme will also bundle micro-insurance coverage under Aspirasi to protect micro-SME proprietors and merchants with emergency income, accidental death and Covid-19 assistance.
AmInvest Research said currently, micro-SMEs account for the majority of SMEs in Malaysia and include the B40 segment which tends to…