PETALING JAYA: CelcomDigi Bhd
is targeting RM465mil of profit and loss cost savings to be realised for the financial year 2026 (FY26), driven by operational efficiency initiatives.
CIMB Research said in a report that this will be achieved mainly via site operational optimisation and efficiencies in information technology network procurement.
“Having booked RM41mil in savings in the first quarter, the remaining RM424mil is to be delivered in the second to fourth quarters of 2026.
“Nevertheless, for now, CelcomDigi is maintaining its earnings before interest and taxes guidance for low single-digit growth, citing potential cost increases elsewhere,” said CIMB Research.
Meanwhile, RHB Research expects that stronger realisation of cost savings could drive double-digit earnings growth in FY27.
“We lift FY28 core earnings by about 5%, but maintain FY26 to FY27 for now. Our estimates have yet to factor in Digital Nasional Bhd’s (DNB) losses,” added the research house.
RHB Research and CIMB Research maintained their “buy” calls on CelcomDigi.
RHB Research has raised the stock’s target price to RM3.60 from RM3.50 previously, while CIMB Research lowered the target price by 5% to RM3.65 a share.
Meanwhile, CIMB Research acknowledges that CelcomDigi’s share price re-rating may take some time.
This is owing to uncertainty over the potential earnings hit from equity accounting for DNB (albeit non-cash), and core earnings per share charting stronger growth only in FY27 to FY28.
Upside risks include higher-than-expected growth in its average revenue per user.
