News Maxis
has announced the appointment of Johan Dennelind as its new Chief Executive
Officer (CEO) effective from 1 July 2013. He will be reporting to the Chairman
of the Board and be appointed to the Board as an Executive Director.
Johan is a member of
Vodafone’s CEO senior Leadership Team and is currently CEO of Vodacom International.
He is, meanwhile, overseeing all Vodacom’s sub-Saharan activities outside South
Africa, which serves some 20.0m customers.
Johan used to work at
Digi.Com Berhad, Malaysia for six years, where he was appointed to several key management
positions during his tenure there. He was first appointed Chief Financial
Officer (CFO) in 2004 and later as Chief Marketing Officer (CMO) followed by
the CEO position in 2008. He resigned as Digi’s CEO on 17 May 2010. During his
six-year tenure, Digi went on to establish a significant market presence and
emerged as one of the leading telecommunications companies in Malaysia.
Sandip Das, the
current Maxis’ CEO, will remain on the Board as a Non-Executive Director.
Comments We
welcome the appointment of Johan Dennelind as Maxis’ new CEO. We believe he
will be able to lead the company into a new business direction and potential
regain its market share in view of his vast experiences in Malaysia's
telecommunication industry.
Outlook Maxis
remains as a solid high-yield play given
its firm 40.0 sen DPS in the next 1-2 years.
However, potential
margin erosions are expected as a result of the aggressive rollout of its Home
Fibre plan and handset subsidy.
Forecast There are no changes in our FY12-FY14 earnings
forecasts.
Rating Maintain MARKET PERFORM
The company’s current
strategy of focusing on customers retention instead of maintaining its margin may
add pressure to its near term financial performance.
Valuation We are
maintaining our Target Price at RM7.00 based on a targeted FY13 EV/forward
EBITDA of 13.1x (+2SD).
Risks Higher
than expected margin pressure.
Continued losses in
its market share to its peers.
Source: Kenanga
No comments:
Post a Comment