PETALING JAYA: Maxis Bhd
has reported results for the third quarter (3Q25) that are above analysts’ expectations.
Most research houses are now saying that they expect the telco group to see stronger improvements in the final quarter, underpinned by ongoing cost optimisation efforts.
TA Research told clients in a report that the company’s management had revised its growth guidance for earnings before interest, taxes, depreciation, and amortisation (Ebitda) for this year (FY25) from low to mid-single-digit levels, reflecting improved cost efficiency.
Meanwhile, guidance on service revenue growth remains in the low single-digit range, with capital expenditure expected to come in at around RM1bil.
“Management also guided that the newly secured 2100MHz spectrum awarded last month will primarily be utilised to enhance network quality and capture additional market share.
“On the shareholding structure of special-purpose vehicle MalaysiaDigital Nasional Bhd (DNB) owned by the Finance Ministry (MoF), management indicated that there has been no new developments from MoF to date. As agreed earlier, MoF holds a put option that requires Maxis, CelcomDigi Bhd and YTL Power International Bhd to acquire its remaining 41.7% stake in DNB within a month after Nov 12,” the research house added.
TA Research said it has raised Maxis’ terminal growth rate from 1% to 1.5%, reflecting the group’s longer-term growth potential from Malaysia’s expanding digital economy.
“Incorporating the earnings-forecast revision, we have adjusted our target price to RM4.20 from RM3.68 and maintain a ‘hold’ call on the stock,” the research house said.
At last look, Maxis shares were at RM4.01 apiece.
In its report on Maxis, Hong Leong Investment Bank Research (HLIB Research) noted that Maxis delivered 3Q25 net profit of RM412mil, bringing earnings to RM1.18bil (up 9.9% year-on-year) for the first nine months of the year, which represents 80% of its full-year estimate and 79% of consensus estimates.
The earnings beat was mainly driven by stronger-than-expected Ebitda margins (41.9% versus 38.5% forecast), reflecting solid cost discipline and operational execution, the research house added.
It noted that year-to-date capital expenditure stood at RM475mil, with spending expected to be backloaded towards the RM1bil full-year target.
Over half of the investment has been directed toward expanding network capacity, balancing upgrades to its own 4G infrastructure with traffic offload to DNB’s 5G network, it said.
It said Maxis is also scaling its fibre expansion to support enterprise and data centre demand, including two new high-capacity trunk routes connecting the north and south corridors for cross-border traffic.
Management also indicated that it has fully deployed the recently acquired 2100 MHz spectrum to improve 4G network quality and enhance customer experience, it added.
Like TA Research, HLIB Research said there has been no update from the MoF on DNB with regards to the government’s put option.
It noted that Maxis reaffirms its readiness to take up the MoF’s stake in accordance with the shareholder agreement.
“While CelcomDiGi has probably taken a cautious writedown on its DNB stake, Maxis sees no necessity for impairment under DNB’s current business plan but will reassess if there are new developments.”
HLIB Research has maintained its “buy” call on Maxis, stating that against the current backdrop, it prefers Maxis for its resilient postpaid momentum and disciplined cost management, with undemanding valuation at 18.4 times FY26 earnings and an attractive net yield of 4.3% offering downside support.
HLIB Research also said it raised its FY25 to FY27 earnings forecasts for Maxis by between 7% and 9% after factoring in higher margin assumptions.
