[%JKCX%]
Research by APEX
HOLD – TP RM 7.21

"Within expectations”

• Telekom reported 2QFY24 core net profit of RM397.8m (+0.1% qoq, - 26.5% yoy) and 1HFY24 core net profit of RM795.1m (+10.0% yoy), which was in-line with ours and consensus’ expectations, accounting for 50% of both forecasts respectively.
• Kept our earnings forecast unchanged for FY24 but revised our FY25- FY26 earnings by +2.7%/+2.5%, incorporating the earlier-than- anticipated earnings contribution from the data center.
• Re-iterate our HOLD recommendation with a higher target price of RM7.21 based on DCF valuation (WACC of 8.3% with a long-term growth rate of 0.5%).

Analyst:
Steven Chong
[%teTX%]

$KLSE-TM
Research by APEX
HOLD – TP RM 7.21

"Within expectations”

• Telekom reported 2QFY24 core net profit of RM397.8m (+0.1% qoq, - 26.5% yoy) and 1HFY24 core net profit of RM795.1m (+10.0% yoy), which was in-line with ours and consensus’ expectations, accounting for 50% of both forecasts respectively.
• Kept our earnings forecast unchanged for FY24 but revised our FY25- FY26 earnings by +2.7%/+2.5%, incorporating the earlier-than- anticipated earnings contribution from the data center.
• Re-iterate our HOLD recommendation with a higher target price of RM7.21 based on DCF valuation (WACC of 8.3% with a long-term growth rate of 0.5%).

Analyst:
Steven Chong
stevenchong@apexsecurities.com.my