Broker: UOB Kay Hian
Date of Report: 06 April 2026
Excerpt from UOB Kay Hian report.
Report Summary
- Sector Call: MARKET WEIGHT (Maintained)
- Top Picks & Actions:
- Axiata Group (AXIATA MK): BUY, Target Price: RM3.00
- CelcomDigi (CDB MK): BUY, Target Price: RM4.05
- Key Idea: The Malaysian telco sector is seeing new MVNO entrants such as China Mobile (CMLINK) and Eastel, focusing on niche prepaid segments and international roaming, especially for China-Malaysia cross-border users. This is intensifying competition in prepaid, while incumbents focus on pre-to-postpaid conversion and bundling.
- Valuation: Sector trades at mean 2026 EV/EBITDA of 7x; average dividend yield of 4.6% expected.
- Key Risks: Earnings pressure from rising competition, integration risks for CelcomDigi merger, and macroeconomic headwinds.
Above is an excerpt from a report by UOB Kay Hian. Clients of UOB Kay Hian can be the first to access the full report from the UOB Kay Hian website : https://research-api.uobkayhian.com/assets/disclaimer/df64a6ea-7980-447c-ae9e-fd19b93257dc
