Dividend has been cut from 20 cents to 16 cents.
The latest 1Q 2018 result also shown a drop of 13% for the Net profit down from 72m to 63m.
Net profit is still dropping and not sure when will we be able to see a good improvement for the company to boost their Net income revenue!
Business Outlook:
➢ Revenue: Maintain service revenue to be 1% to 3% lower YoY
➢ Service EBITDA*: Expect service EBITDA margin to be between 27 - 29% after adoption of SFRS(I) 15
➢ CAPEX: Maintain cash capex to be about 11% of total revenue (excludes spectrum and building payments)
➢ Dividend: Declare an interim quarterly dividend of 4.0 cents per ordinary share for 1Q2018 Intend to pay a quarterly cash dividend of 4.0 cents per ordinary share for FY2018
*Service EBITDA refers to EBITDA less equipment margin (Sales of Equipment less Cost of Equipment)
Free Cash flow has also been drifting lower as reflected on the chart below:
From TA point of view, it is on a long term down trend mode as reflected on the chart.
After going ex-dividend 2 days ago, it has continued to drop lowered from $2.26 to close at $2.18 level. The dropping of 8 cents is more than the 4 cents dividend . This is rather negative.
Short term wise , it is still rather weak and we may see further selling down pressure.
Immediate resistance is at $2.10. Breaking down of $2.10 level with high volume, it may likely continue to slide down further towards $2.00 with extension to 1.91.
Not a call to buy or sell.
Please do your own due diligence.
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