TM’s structural growth prospects intact

RHB Research noted the rollout of the second 5G network will see TM gaining the most.

PETALING JAYA: Telekom Malaysia Bhd (TM) remains a preferred pick in the telecommunications sector due to the group’s structural growth prospects, return on invested capital accretion, capital management upside and undemanding valuation.

There is also a natural hedge between the group’s US dollar loan (about 32% of debt) and US dollar revenue, mainly wholesale, with the bulk of revenue sourced domestically.