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AXIATA: Edotco Sale Plans Will Unlock Value Despite Softer Revenue Outlook

Rapid Digitalization And Urbanization Will Unlock Secular Opportunities

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AXIATA
AnalystHighTarget
Not Invested
Published 28 Jun 2025

Update shared on 12 Dec 2025

Fair value Decreased 2.97%
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AnalystHighTarget's Fair Value
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1Y
12.3%
7D
-1.1%

Analysts have slightly reduced their price target on Axiata Group Berhad from around RM4.04 to RM3.92, citing lower expected revenue growth even as profitability and valuation assumptions improve.

What's in the News

  • Axiata Group Berhad is hosting an Analyst and Investor Day, providing updates on strategy, operational performance, and capital allocation plans (company event).
  • The group has reportedly reactivated plans to sell its 63 percent majority stake in tower unit Edotco Group Sdn Bhd, in a potential deal valuing Edotco at about USD 2 billion (MYR 8.45 billion) (The Edge, market sources).
  • Non binding bids for Edotco are said to be due soon, with JPMorgan reportedly managing the sale process and interest emerging from private equity and infrastructure funds, including potential foreign local consortia (The Edge, market sources).
  • Axiata reiterates that it is exploring value illumination and potential monetisation options for Edotco and will make announcements as required when material developments occur (company email response via The Edge).

Valuation Changes

  • Fair Value: Reduced slightly from about MYR 4.04 to MYR 3.92 per share, reflecting more conservative growth expectations.
  • Discount Rate: Lowered marginally from roughly 8.55 percent to 8.49 percent, indicating a slightly improved risk assessment.
  • Revenue Growth: Cut significantly from about 3.87 percent to around 1.61 percent, pointing to a softer medium term top line outlook.
  • Net Profit Margin: Raised meaningfully from roughly 5.64 percent to about 8.97 percent, suggesting stronger profitability expectations.
  • Future P/E: Reduced substantially from about 34.6x to roughly 22.7x, implying a less demanding valuation multiple on projected earnings.

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