KUALA LUMPUR, Nov 11 (Bernama) -- Maxis Bhd’s earnings performance is commendable despite the rather saturated market view with regards to competitive pricing, quota and speed offerings, said MIDF Amanah Investment Bank Bhd.
In particular, its postpaid segment remains the group’s best performance segment in absolute terms while its home connectivity, fixed and solutions segments continue to show favourable progress, the investment bank said via MIDF Research.
"We expect the positive momentum to persist as the group expands offerings to provide fixed connectivity service for data centres and GPU-as-a-Service (GPUaaS).
"The group’s cash flow position is also much stronger due to the efficient capital working management," it said in a note.
MIDF is keeping its “Buy” recommendation on Maxis with an unchanged target price (TP) of RM4.47 after the third quarter financial year 2024 (3Q FY2024) results announcement.
Similarly, CIMB Securities Sdn Bhd has also kept its “Buy” call on Maxis with an unchanged TP of RM4.15.
The research firm said nine months (9M) 2024 core earnings per share of 9.01 per cent year-on-year (y-o-y) was largely in line with expectations.
It noted key re-rating catalysts include more clarity on the final shareholding structure for Digital Nasional Bhd and Entity B in the next three to six months and solid FY24-26 dividend yields of 4.5 to 5.0 per cent.
Key downside risks meanwhile would include adverse regulatory developments and more intense competition.
On the other hand, Hong Leong Investment Bank has reiterated its “Hold” position with an unchanged TP of RM3.93.
It said Maxis is the second largest telco in terms of revenue market share with quality of service as differentiation to drive leadership in data adoption, but its decision on 5G strategy may impact its dividend, which poses a near-term uncertainty.
At 11 am, Maxis’s share price was up by 2.0 sen to RM3.59, with 508,800 shares traded.
-- BERNAMA
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