Tuesday 23 Jul 2024
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KUALA LUMPUR (July 13): Maybank Investment Bank has maintained its “Hold” rating on Maxis Bhd at RM4.04 with an unchanged target price (TP) of RM4, and said Maxis is taking a more prudent and sustainable stance on both strategy and dividends.

In a note on Thursday (July 13), the research house said it views risk-reward as being merely balanced presently, with Maxis’ generally stable earnings delivery being offset by a more conservative dividend outlook and overall 5G uncertainty.

Maybank IB has revised its dividend assumptions for Maxis and said given the lack of clarity pertaining to 5G involvement, it expects management to continue with a four sen quarterly dividend per share (DPS) in the near term.

“We have lowered our annual DPS assumption to 17 sen (from 20 sen), our FY2025 net profit forecast is consequently raised by 1%.

“Our RM4.00 DCF (discounted cash flow)-based TP (assuming 7.7% WACC (weighted average cost of capital) and 2% LT growth) is unchanged.

“We prefer Telekom Malaysia Bhd (Buy, TP: RM6.50) in the telco space,” it said.

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