PETALING JAYA: Maxis Bhd
is expected to chart modest earnings growth in the coming years, supported by stable fundamentals but weighed down by subdued service revenue and cautious capital spending, according to CGS International Research (CGSI Research).
The research house downgraded its call on Maxis from “add” to “hold”, citing limited upside following a 9% rise in the telco’s share price over the past month.
“We downgrade our call on Maxis as the 9% rise in its share price over the past month has left limited upside to our target price of RM3.93.
“At current levels, Maxis’ shares trade at 19.7 times the price-earnings ratio for this year and provides a 4.8% dividend yield, which we see as fair given our projection for 3.4% compound annual growth rate in earnings per share between 2024 and 2027,” the research house said in a report.
For the first quarter ended March 31, (1Q25), Maxis posted a net profit of RM371mil or a basic earnings per share of 4.70 sen.
Its revenue also saw a slight increase to RM2.61bil in 1Q25 from RM2.6bil in the same quarter of the previous year.
CGSI Research noted that the quarterly net profit was “in line, at 25% of both its own and Bloomberg’s consensus estimates, for this year.”
Maxis also declared an interim dividend of four sen per share, which also came within expectations, the research house said.
