KUALA LUMPUR: AmInvestment Research is maintaining its Hold call on Telekom Malaysia (TM) with an unchanged discounted cashflow based fair value of RM4.15 a share.
The research house said on Monday this was based on a weighted average cost of capital (WACC) of 7.4% and terminal growth rate of 2%. This implies an FY20F entgerprise value/ earnings before interest, tax, depreciation and amortisation (Ebitda) of five times, at parity to its two-year average.
It said TM’s stake in Webe Digital Sdn Bhd (webe) has risen to 91.8% from 72.9% with the exchange of its RM187mil exchangeable medium term notes (MTN) for Green Packet’s remaining 5.2mil webe shares and 37mil convertible unsecured MTNs. SK Telecom Co Ltd will hold the remaining 8% stake in webe.
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