Apr 9, 2010


maxis_logo Maxis Bhd (RM5.32; Hold; Price Target: RM5.60; MAXIS MK)

Long term dividends
•  We initiate coverage on Maxis with a HOLD call as it offers only 5% capital appreciation to DCF-based price target of RM5.60.
•  Maxis’ 4.5% dividend yield is higher than the 2.7% yield under our universe of coverage, but is below Digi’s 5%.  
•  Maxis trades at 12% premium to Digi in terms of FY11F EV/EBITDA. 
•  Valuation upside limited.
source: HDBS Vickers