KUALA LUMPUR (May 15): Maxis Bhd's (KL:MAXIS) earnings rose more than 12% in the first quarter ended March 31, 2026 (1QFY2026), thanks to a modest increase in services revenues at both its consumer and enterprises segments.
During the quarter under review, the telco posted a net profit of RM417 million or 5.3 sen per share from RM371 million or 4.7 sen per share in the year-ago period.
Revenue climbed 4.7% to RM2.73 billion from RM2.61 billion a year earlier, according to a Bursa Malaysia filing on Friday.
Maxis declared an interim dividend of four sen per share, which is similar to the amount paid in the previous corresponding period, and it will be paid on June 23.
During the quarter under review, Maxis saw an improved operating free cash flow of RM983 million, supported by strong working capital management. Capital expenditure (capex) stood at RM142 million.
It kept its guidance for the financial year ending Dec 31, 2026 (FY2026) intact: a low single-digit increase in service revenue, a low single-digit growth in earnings before interest, taxes, depreciation and amortisation, and capex intensity between 10% and 12%.
Looking ahead, Maxis will focus on strengthening its customer base through bundling, expanding enterprise solutions beyond connectivity, growing network and wholesale operations, leveraging digitalisation and artificial intelligence, and fostering a high-performance culture.
AskEdge data shows Maxis trading at a price-earnings ratio of 18 times, which is lower compared to its historical valuation in recent years. Meanwhile, its peers CelcomDigi Bhd (KL:CDB) is trading at 24.2 times and Telekom Malaysia Bhd (KL:TM) at 17.1 times.
According to Bloomberg, of the 22 analysts covering Maxis, 12 have ‘hold’ ratings, while nine recommend ‘buy’ and one has a ‘sell’ call. The average 12-month target price is RM4.05 per share, with target prices ranging from RM3.30 to RM5.10.
At the midday break on Friday, shares of Maxis were down one sen or 0.28% at RM3.59, valuing the company at RM28.1 billion.