PETALING JAYA: Telekom Malaysia Bhd
(TM) has turned aggressive to defend and expand its Unifi market share as competition continues to intensify in the fixed broadband and mobile segments.
The telecommunication company will escalate its marketing efforts this and next year, including offering subsidised electronic devices for Unifi’s service plans, to retain existing customers and attract new subscribers.
This is a significant departure from its traditional approach, which was primarily defensive and refrained from aggressive competitive measures, according to Kenanga Research.
It said near-term growth is expected to be driven by broadband services, comprising wholesale as TM targets provision of fiber backhaul for the second 5G network and home fiber.
It is also focusing on cost-effective entry level GPU-as-a-Service for its customers and is open to procuring higher-end GPUs, or graphic processing units, if customer demand progresses toward advanced artificial intelligence workloads.
Kenanga has an “outperform” call on the stock with a target price of RM7.53 a share based on unchanged seven times financial year 2025 enterprise value to earnings before interest, tax, depreciation and amortisation.
At the time of writing, the stock was trading at RM6.61. Risks to its call include cost drag from Unifi Mobile due to lack of scale, and pricing pressures at the retail segment arising from policy-led directives.
