PETALING JAYA: Telekom Malaysia Bhd
(TM), which posted better-than-expected fourth quarter financial results, is expected to continue with its positive trajectory as the telecommunications giant fulfils key connectivity targets under the National Digital Network (Jendela) plan, supporting digital transformation and 5G rollout.
Analysts are bullish on the counter as TM is able to leverage on secular data growth on the back of current trends such as the proliferation of the Internet of things and artificial intelligence integration.
“We like TM on account of it benefitting from Jendela phase two projects via roll-out and monetisation opportunities and earnings accretion from potential development of new hyperscale data centres,” said Kenanga Research.
TM posted its best-ever quarterly results as its core net profit rose 17% year-on-year (y-o-y) to RM607mil in the fourth quarter ended Dec 31, 2023, lifting its full year 2023 (FY23) sum to RM2.2bil, which was a 47% y-o-y jump.
“We are particularly positive on its cost-optimisation measures which are now yielding an impactful outcome. Leveraging on its extensive fibre reach, TM is perceived to be the critical fundamental building block of the government’s 5G rollout under the MyDigital initiative,” the research house added
