PETALING JAYA: Telekom Malaysia Bhd’s (TM) net loss of RM166mil in its third quarter ended Sept 30 due to foreign exchange (forex) losses, is unlikely to affect its cashflow.
Despite the recent forex losses, most analysts expect TM’s performance to be favourable going forward.
An analyst with OSK Investment said stripping out the unrealised and realised forex losses, TM’s results for the nine months ended Sept 30 were in line with expectations.
“The company’s core net profit of RM587mil for the nine months made up 70.4% of our estimate. A comparison with consensus has no meaning given the disparity in forecast numbers that may have factored in exceptional items,” he said.
An analyst with CIMB Equities was more optimistic about TM’s performance, despite the RM196mil forex loss on its US$1.1bil loan in the third quarter due to a 5% depreciation of the ringgit against the dollar to 3.4425 from 3.265.
“We believe TM provides investors with a safe haven given its steady operations, low gearing and imminent re-rating. It’s our top Malaysian telco pick for its attractive dividend yield and low-risk business,” he said.
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