KUALA LUMPUR (Aug 27): Axiata Group Bhd shares were down as much as 17 sen or 4% to RM4.55 so far today after the mobile telecommunication network provider reported on Friday a second quarter net loss of RM3.36 billion versus a net profit of RM407.21 million a year earlier.

For the first half ended June 30, 2018 (1HFY18), Axiata said net loss stood at RM3.5 billion compared to a net profit of RM646.22 million a year earlier.

At Bursa Malaysia today, Axiata shares were traded at RM4.64 at 11:34am with 557,200 shares transacted.

Affin Hwang Investment Bank Bhd wrote in a note today: "All in, the results were below market and our expectations. 1H18 core net profit accounts for 31-32% of the street and our full year forecasts; 1H18 core pretax profit accounts for 53% of consensus and 43% of our full year forecasts."

"We cut our 2018E core EPS by 16% but raised 2019-20E core EPS forecasts by 2-3% after imputing the weak 1H18 results, higher tax rate for 2018E, lower losses from associates/JV following the derecognition of loss-making Idea, and minor earnings cut at Robi and Celcom. In tandem, we have reduced our SOP (sum-of-parts)-derived target price to RM4.42 (from RM4.54). Maintain HOLD," Affin Hwang said.