PublicInvest: Maxis to deliver resilient FY25 earnings on steady postpaid, fibre growth

KUALA LUMPUR: Maxis Berhad is expected to deliver resilient earnings in the financial year 2025 (FY25), underpinned by steady domestic demand for affordable postpaid mobile services and growing adoption of fibre connectivity to homes.
Public Investment Bank Bhd (PublicInvest) said the revenue came in flat in the first quarter of financial year 2025 (Q1 FY25) as the increase in fibre, postpaid and device revenue was offset by lower contribution from the prepaid segment.
The firm noted that postpaid subscriber base was 10.3 per cent higher, driven mainly by Maxis Postpaid and Hotlink Postpaid, despite a 4.4 per cent year-on-year decline in average revenue per user (ARPU) to RM71.80.
Consumer home connections were 5.1 per cent higher while ARPU declined by 3.9 per cent.
Meanwhile, the decline in prepaid ARPU outpaced the growth in its subscriber base, falling 8.4 per cent year-on-year compared to a 2.3 per cent increase in users.
On the company's investment in 5G wholesale network, PublicInvest said Maxis has recently proposed to acquire additional stake in Digital Nasional Bhd (DNB) from U Mobile for RM33,333, after the latter was appointed as the second 5G network provider by the government.
Following the completion this by end-May, Maxis, CelcomDigi and YTL will hold an equal stake of 19.44 per cent (an increase from 16.3 per cent) each in DNB, with the remaining 41.67 per cent will be owned by the MoF.
"Although the proposed investment is not expected to have any material financial impact in the immediate term, this helps to remove concern of Maxis having to spend a sizeable capital expenditure commitment in order to build its own 5G network.
"While the three parties may have to explore infrastructure sharing arrangements that could complicate the rollout process, we believe this will be manageable as Maxis, Celcom and Digi have previously collaborated successfully to jointly develop and share fibre infrastructure," it said.
Despite the stable earnings outlook, PublicInvest have downgraded Maxis' stock rating from "Buy" to "Neutral," citing limited upside potential with the stock trading near its target price (TP) of RM3.90.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

New Straits Times

7 days ago

• New Straits Times

PublicInvest: OPR cut likely in Q3, REITs outlook Neutral

KUALA LUMPUR: Public Investment Bank (PublicInvest) has revised its base case to include a 25 basis point cut in the Overnight Policy Rate (OPR) in the third quarter of 2025, subject to the continuation of reciprocal tariff suspensions and broadly stable domestic conditions. Although Bank Negara Malaysia (BNM) kept the OPR unchanged at 3.00 per cent in its recent monetary policy meeting, the central bank adopted a more accommodative stance by lowering the Statutory Reserve Requirement (SRR) from 2 per cent to 1 per cent, effective May 16. This move is expected to release about RM19 billion into the banking system to support economic growth amid rising external uncertainties, particularly ongoing trade tensions linked to US President Donald Trump's tariff policies. According to PublicInvest, the central bank's May policy statement cited several downside risks, including a sharper slowdown in key export markets, weaker consumer and business sentiment, and softening commodity output. The firm noted that the inclusion of "weaker sentiment" may indicate the early stages of a slowdown in private consumption and investment. While the OPR remains unchanged for now, PublicInvest said the SRR cut represents a proactive measure to ease liquidity pressures and pre-emptively safeguard domestic growth. Despite the policy shifts, the impact on earnings for real estate investment trusts (REITs) under PublicInvest's coverage, particularly those with floating-rate loans, is expected to be limited. The firm estimates a potential 1 per cent to 2 per cent reduction in interest costs should a 25 bps OPR cut materialise. "We keep our earnings estimates unchanged for now. Although we still believe the sector is fairly valued for now and maintain our Neutral stance, the attractive dividend yield of around 5 per cent looks sustainable," the firm said in a note. KL-listed REITs are currently offering an average gross yield of about 6 per cent, reinforcing the sector's appeal amid market volatility. Among its REIT coverage, PublicInvest has reiterated its preference for Sunway REIT (SREIT), citing its diversified asset portfolio and ambitious growth plan under the Transcend 27 roadmap. The strategy targets portfolio expansion from RM10 billion to RM14 billion to RM15 billion within the next two to three years. SREIT is expected to benefit from full-year earnings contributions in FY2025 from recently acquired assets, including 163 Retail Park in Mont Kiara, Kluang Mall in Johor, and an industrial facility in Prai, Penang. Additionally, the reconfiguration of Oasis retail space at Sunway Pyramid, down to 260,000 sq ft from 320,000 sq ft as of November 2024, is anticipated to enhance rental efficiency. In light of these developments, PublicInvest has raised SREIT's target price to RM2.10 (from RM1.80), reflecting an implied forward dividend yield of approximately 5.5 per cent based on FY2026 estimates. PublicInvest also noted that while Malaysia's retail sales are on a recovery path, rental reversions for malls in key urban locations are likely to remain flat in the near term. This is due to incoming retail supply and ongoing market uncertainty stemming from renewed trade tensions. "That said, we believe those established malls with a good tenant mix are expected to stay resilient and hence occupancy rates are likely to remain steady."

Free Malaysia Today

09-06-2025

• Free Malaysia Today

Telcos reassure public no personal data shared with MCMC

CelcomDigi, U Mobile, Telekom Malaysia and Maxis stress that only anonymised data — without any personally identifiable information — will be shared with MCMC. (Freepik pic) PETALING JAYA : Telco companies have reaffirmed their commitment to protecting customer data following the sharing of mobile phone data (MPD) for official statistical purposes with the Malaysian Communications and Multimedia Commission (MCMC). In separate statements, CelcomDigi, U Mobile, Telekom Malaysia and Maxis stressed that only anonymised data — without any personally identifiable information — will be shared with MCMC. CelcomDigi emphasised its strict adherence to existing data protection laws, including the Communications and Multimedia Act and the Personal Data Protection Act, adding that customer trust remains at the core of its operations. The telco acknowledged the ongoing discussions and concerns raised by the public over the MCMC initiative and said it is working closely with the commission to support the government's efforts without compromising the integrity of customer data. 'At all times, we operate under tight security protocols and in compliance with the relevant data protection laws and regulations, with stringent limitations on any personal identifiable information,' it said. U Mobile, meanwhile, affirmed that customer data and privacy are its top priority, with policies and processes in place to ensure any shared data is anonymised, aggregated and fully compliant with applicable data protection laws and regulations. 'We are aware of the objectives of the initiative and are committed to working with MCMC in a manner that upholds the highest standards of data governance,' it said. It noted that when the company does share its mobile phone data, at no point will personally identifiable information be revealed or processed. U Mobile remains committed to safeguarding customer privacy and ensuring full regulatory compliance in all aspects of data management, it added. TM also clarified that the mobile phone data submitted to MCMC is fully anonymised and does not contain any personally identifiable information. Data submission is carried out under strict governance and security protocols, with full compliance to applicable company policies as well as national laws and regulatory requirements, it said in a statement. 'TM remains fully committed to safeguarding the safety and privacy of customer data with responsibility and integrity,' it noted. Meanwhile, Maxis also said MCMC will have no access to personally identifiable information at any stage. It added that controls and processes are in place to ensure customers' personal data will not be compromised. 'All data is anonymised by Maxis and processed in an aggregated manner within a secure environment, in full compliance with the Personal Data Protection Act 2010,' it said in a statement. 'Maxis remains fully committed to protecting the data of all our customers.' On Friday, MCMC clarified that its collection of mobile phone data from mobile network operators does not involve the access, processing or disclosure of any personally identifiable information. MCMC said the mobile phone data will be used strictly to generate official statistics to support evidence-based policymaking in the information and communications technology (ICT) sector and the tourism sector. Earlier today, communications minister Fahmi Fadzil assured the public that MCMC is not collecting any personal information from telecommunications companies. He said MCMC's request for phone companies to hand over data on all mobile phone calls, made from January to March, is a Cabinet decision aimed at collecting data for the statistics department, with the goal of creating better policies and plans.

Barnama

06-06-2025

• Barnama

Oversupply, Price Pressures Stall Glove Industry Recovery

REGION - CENTRAL > NEWS KUALA LUMPUR, June 6 (Bernama) -- The Malaysian glove sector remains under pressure as persistent oversupply, cautious customer sentiment, and pricing competition continue to weigh on recovery prospects. In a research note released today, Public Investment Bank Bhd (PublicInvest) stated that the latest quarterly results from glove manufacturers under its coverage showed a sequential decline in sales volumes, primarily due to earlier front-loading activities by United States customers. 'We gather that customers remain cautious, with most adopting a wait-and-see stance, delaying sizeable purchases amid uncertainty from changes in tariff policy. In light of subdued demand visibility in the near term, we downgrade our sector call to 'Neutral' from 'Overweight',' said PublicInvest. bootstrap slideshow It also said that price competitiveness remains a key headwind. Although tariff adjustments have narrowed the average selling price (ASP) gap between China and Malaysia, China's glove prices remain relatively uncompetitive in the US market. Specifically, China's price is US$27 per 1,000 pieces, compared to Malaysia's US$20 per 1,000 pieces, even factoring in an 80 per cent tariff. 'However, the recent invocation of emergency powers has prevented President Donald Trump from enacting broader tariff hikes. Assuming a more conservative scenario where China faces only a 10 per cent reciprocal tariff, China's ASP will be at US$24/1k pcs, significantly closing the pricing gap with Malaysia,' it added. The research house said that Chinese producers may absorb part of the tariff cost to defend market share, which would likely keep global ASPs subdued and limit near-term recovery for Malaysian glove makers. 'Despite losing market share in the US market, Chinese glove manufacturers are aggressively increasing market share in the non-US market, especially the European Union, pricing as low as between US$14 to US$15/1k pcs. 'China is currently expanding capacity outside of China in a bid to retain global competitiveness,' it added.