KUALA LUMPUR, July 29 ― Maxis Bhd's share price on Bursa Malaysia rose by 2.21 per cent during the early morning trade on expectations that the telecommunications company (telco) is set to continue its positive momentum.
At 10.40am, its shares increased by eight sen to RM3.70, with 797,700 shares traded.
Yesterday, Maxis reported that its operating free cash flow rose by a substantial 40.3 per cent year-on-year to RM1.17 billion on the back of the group’s solid capital management initiatives, enabling it to declare an interim dividend of 5.0 sen net per share for the quarter.
In a note, Kenanga Research forecast Maxis’ positive momentum to continue and sustain into the second half of 2022 (2H2022) on the ongoing reopening of the economy.
“Mobile subscriptions will be boosted by the return of foreign workers with the reopening of borders.
“Given the attractive bundling of home internet and mobile services, we are positive on home internet gaining further momentum,” it said.
The research house said the reopening of the economy is boosting the telco’s business-to-business revenue as corporates and small and medium enterprises continue their digitalisation efforts.
As such, it has maintained its ‘outperform’ call on Maxis, with a target price (TP) of RM3.90.
Meanwhile, in a separate note, CGS-CIMB Securities Sdn Bhd reiterated its ‘add’ call on Maxis (TP RM3.85), based on greater clarity on the 5G situation in Malaysia, which may come to light next month.
“The downside risks are delays in 5G final resolution, more intense mobile competition and weak enterprise earnings,” it said. ― Bernama
