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Research by Kenanga
MARKET PERFORM – TP RM3.74

"Steady Cost Discipline”

MAXIS’s 1HFY24 results tracked expectations on the back of tight cost controls. Despite growth in areas such as enterprise solutions, we believe that MAXIS's premium valuations may be eroded. This considers its smaller scale in a mature and competitive market, where its main competitor has recently gained traction in realizing merger synergies. We maintain our forecasts, but cut our TP by 29% to RM3.74 (from RM5.30) and downgrade our recommendation to MARKET PERFORM from OUTPERFORM. A re-rating catalyst could be earlier-than-expected monetization of 5G from enterprises

 Analyst:
Kylie Chan Sze Zan 
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$KLSE-MAXIS
Research by Kenanga
MARKET PERFORM – TP RM3.74

"Steady Cost Discipline”

MAXIS’s 1HFY24 results tracked expectations on the back of tight cost controls. Despite growth in areas such as enterprise solutions, we believe that MAXIS's premium valuations may be eroded. This considers its smaller scale in a mature and competitive market, where its main competitor has recently gained traction in realizing merger synergies. We maintain our forecasts, but cut our TP by 29% to RM3.74 (from RM5.30) and downgrade our recommendation to MARKET PERFORM from OUTPERFORM. A re-rating catalyst could be earlier-than-expected monetization of 5G from enterprises

 Analyst:
Kylie Chan Sze Zan 
kyliechan@kenanga.com.my