Telekom Malaysia Bhd [%zvtI%] 
Research by Kenanga
OUTPERFORM: Price Target: RM7.00

"Beneficiary of Extended Lockdowns"


We attended TM’s briefing on unifi and came away feeling optimistic about TM’s prospects, as our investment thesis remains intact. We continue to expect strong unifi subscriber growth in the coming quarters as home fibre continues to gain traction amidst extended lockdowns. Moving forward, despite future ARPU dilution, we think the strong subs base growth will continue to lift unifi’s revenue. Reiterate OUTPERFORM with unchanged TP of RM7.00, as we believe TM deserves to be traded at a 7x Fwd. EV/EBITDA vs. the current 6.2x.

Lim Khai Xhiang 
E [%fRaF%]

Telekom Malaysia Bhd $KLSE-TM 
Research by Kenanga
OUTPERFORM: Price Target: RM7.00

"Beneficiary of Extended Lockdowns"


We attended TM’s briefing on unifi and came away feeling optimistic about TM’s prospects, as our investment thesis remains intact. We continue to expect strong unifi subscriber growth in the coming quarters as home fibre continues to gain traction amidst extended lockdowns. Moving forward, despite future ARPU dilution, we think the strong subs base growth will continue to lift unifi’s revenue. Reiterate OUTPERFORM with unchanged TP of RM7.00, as we believe TM deserves to be traded at a 7x Fwd. EV/EBITDA vs. the current 6.2x.

Lim Khai Xhiang 
E limkx@kenanga.com.my