PETALING JAYA: CelcomDigi Bhd
is set to benefit from the completion of Digital Nasional Bhd’s (DNB) RM5.2bil financing exercise, which paves the way for the transfer of DNB shares to CelcomDigi, YTL Power International Bhd and Maxis Bhd, according to CGS International (CGSI) Research.
The brokerage expects the share transfer to be completed “within weeks”, bringing it within its revised expectation of completion in the fourth quarter of financial year 2026 (4Q26).
“Once the transfer is completed, we would expect CelcomDigi and the other new shareholders to be able to take steps towards streamlining DNB’s operations to minimise losses (RM1.2bil in financial year 2024 or FY24) and work towards an efficient 5G rollout,” it said.
However, the research house cautioned that the financing structure remains unclear and DNB’s financials for FY25 have yet to be published. As such, the impact of the financing remains uncertain.
Following the share transfer, CelcomDigi and the other shareholders are expected to recognise their respective share of DNB’s losses under associates and joint venture contributions.
CGSI Research currently estimates CelcomDigi’s share of DNB losses at RM56mil in FY26, RM272mil in FY27 and RM241mil in FY28.
Despite the near-term earnings drag, it maintained its “add” call on CelcomDigi with an unchanged target price of RM2.84.
The brokerage said the stock’s valuation remains undemanding at 14.5 times FY27 forecast price-to-earnings, while its FY26 dividend yield is estimated at 5.8%.
It identified CelcomDigi’s 3Q26 results, due in November, as a near-term catalyst.
CGSI Research forecasts CelcomDigi’s net profit to rise from RM1.51bil in FY25 to RM1.72bil in FY26, RM2.03bil in FY27 and RM2.37bil in FY28. Still, competitive pressure remains a key concern, particularly from U Mobile Sdn Bhd.
