They expect the share buyback to continue which in my opinion will benefit its warrant more than its mother share.
I wasn't too pleased with this quarter's result, because:
1) One million has been thrown around as a magical number for YES breakeven but at one million subscriber they are still losing money.
2) Weakness in power seraya due to excess capex
3) Losses at the investment holding level without much details
I am glad that a research house have came out with a higher price target than I personally have, but I still think the investment is worth holding on to due to:
1) Attractive valuation backed by strong operational cashflow from long term concession like business.
2) Potential catalyst from the launch of LTE giving them a fighting chance of being a full fledged telco. I always like to compare the market cap of Maxis of approx RM51.8B today against RM10.5B of YTLP. I believe YES with LTE will be a serious competitor in the marketplace.
I am not too fuss about the IPP front as I see 1MDB as being a player with significant market advantage in its bidding. I will be pleasantly surprised if 1MDB doesn't win the next IPP project too.
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