Telekom Malaysia

[winston]

not vested

Aug 25, 2022

Going stronger
A new high

2Q22 core net profit was again above our/consensus forecasts and represents a new quarterly high.

The beat was due to EBITDA outperformance and lower-than-expected depreciation.

The overall outlook remains favourable in our view, with TM potentially benefitting
from strong fibre uptake and ongoing cost optimisation.

Reiterate BUY with a higher DCF-based MYR7.80 TP (+4%). TM remains our preferred
sector pick.

Source: Maybank

https://rfs.cgs-cimb.com/api/download?f ... EE720486EC

[winston]

not vested

Feb 26, 2024

TM surges to three-year high after above-view 4Q, analysts see further upside

By Jason Ng

Better-than-expected earnings for the fourth quarter ended Dec 31, 2023 (4QFY2023).

TM reported last Friday that its 4QFY2023 net profit more than doubled to RM46.3 million from a year ago, thanks to tax credits and higher data revenue, as well as lower costs.

The company booked a tax credit of RM46.3 million during the quarter, as opposed to tax expense of RM53.6 million.

Revenue for the quarter, meanwhile, rose 5% year-on-year to RM3.12 billion from RM2.98 billion, mainly from an increase in data, internet and multimedia services, and other telecommunications services.

For FY2024, the company said it is targeting “low single-digit” growth in revenue and earnings before interest and tax of between RM2.1 billion and RM2.2 billion. The company is also planning for 14%-18% capital expenditure as a percentage of revenue.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/702278

[winston]

not vested

Deferring tax benefits

We reiterate our Add call on Telekom Malaysia with an unchanged target price of RM7.30, post a review of our estimates after the 4Q23 results.

We leave our core profits estimates largely unchanged but remove our tax break assumption for FY24F, following management guidance.

At 14.2x FY24F core P/E and offering a >4% FY24-26F dividend yields, TM’s valuations are attractive vs. peers, with earnings as the key rerating catalyst.

TP: RM 7.30

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 89AA5629DC