Analysts getting more positive on TM

Room for growth: An aerial view of TM’s Klang Valley data centre.

A number of analysts have recently turned more positive on their rating for Telekom Malaysia Bhd (TM). And the recent announcement by the government on the one-off prosperity tax has not changed their view.

Budget 2022 has introduced this tax on companies that make more than RM100mil in profit for the year of assessment 2022. Kenanga Research reckons that the one off prosperity tax is likely to reduce TM ‘s earnings per share by 9%, resulting in its dividend per share to drop from 17.5 sen to 17 sen.