Telekom Malaysia Berhad - Boosted by tax reversal
Fri, 24-Nov-2023 08:55 am
by Lee Cherng Wee • Apex Research

Counter

TM (4863)

Target Price (RM)

6.50

Recommendation

Buy

  • Telekom Malaysia’s 9MFY23 net profit of RM1.44b was above our expectations due to reversal of tax losses.
  • Looking ahead, we opine that Broadband revenue from Unifi will continue to lead TM’s growth despite the recent revision of MSAP.
  • We maintain our BUY recommendation with a higher target price of RM6.50 (WACC 9.6%, terminal growth 0.5%).
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Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.452920 4.487673
EUR 4.698373 4.707035
CNY 0.612094 0.612693
HKD 0.572113 0.576600
SGD 3.311112 3.337265