AXIATA : Maintain BUY, target price RM5.30

MIDF Research expects that growth for Axiata Group Bhd (6888) will come from its overseas market, especially Indonesia and Bangladesh. 

  The two countries contributed 39.3 per cent and 7.6 per cent to Axiata's first-half 2010 revenue, while growing 49.3 per cent and 24.8 per cent year-on-year respectively.

"We maintain our call for Axiata due to its diversified exposure and growth potential, especially in Indonesia and Bangladesh," MIDF said.

Boost will also come from its associate in Singapore, M1, following Singapore's Infocomm Development Authority announcement that it was allotting additional spectrum to the three existing telecommunications companies and are foregoing the auction of a fourth 3G spectrum.