For any developing country (especially with huge population), whenever the economy is on upward trend, banking sector and telco sector will definitely enjoy an extraordinary growth rate.
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Reference : write-up on 13-2-2011 on XL Axiata. Share price Rp5,200 ( NOW Rp6750 - up by 29% less than 3 months)
The share price move exceeded my target price of Rp6080-Rp6400.
To recap the information given in post dated 13-2-2011:-
Financial Highlight For Fy2010:- (as at 31-1-2011)
1. EPS : Rp 237 (FY09) > Rp 340 (FY10) + 43%
2. Total Asset = Rp 27,251 billion ( RM9.3 billion)
3. Total Liabilities = Rp 18,577 ( RM6.3 billion)
4. Equity = Rp 8,803 (RM 3 billion )
5. Dividend payout policy= 30% of normalised EPS
Comments:
a) Expect earning growth rate of minimum 20% for FY2011.
b) Increase in subscriber base and prepaid and postpaid revenue due to increase in income.
c) Expect record EPS for FY2011= Rp380 - Rp400
d) Target price = Rp6080 - Rp6400 based on 16x PER for Fy2011 ( upside 23% )
e) Therefore, any adjustment below Rp5000 will provide good opportunity to accumulate this counter.
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Therefore, the next 2 telco companies to watch out :
1. INDOSAT - Rp5,300
2. TLKM - Rp7,700
Another Counter To Consider : TLKM.JK , Largest telco company in Indonesia. 52.47% owned by Indonesia government
1. Price = Rp7,600, Target Price 11,200 based on 16X PER of FY2011. (upside 47%)
2. Expected EPS FY2011 = Rp700
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