AmInvestment maintains hold on TM on MSAP implementation


KUALA LUMPUR: AmInvestment Research has maintained its hold call on Telekom Malaysia and fair value of RM3.30 a share based on an FY19FF EV/Ebitda of 5.5x.

"This is 3SDs below its 3-year average of 8x given the intensifying broadband competition and implementation of the Mandatory Standard on Access Pricing (MSAP), which has reduced wholesale prices for third-party operators to access TM’s high-speed broadband network," it said.

The research house also commented on a report by The Star that TM's dominant position in the fixed broadband market is being encroached upon by Tenaga Nasional's pilot project in Jasin, Melaka to assess the the viability deploying its fibre optic network for the government's National Connectivity Plan.

"Tenaga currently has an extensive fibre optic network of over 12,000km and as the sole distributor for electricity in the country, has access to every home in Malaysia, enabling the company to deploy parallel high-speed broadband capability over its power infrastructure," said AmInvestment.

However, AmInvestment believes Tenaga would be collaborative with TM as its resources could facilitate in its fibre roll out. 

"As Tenaga is likely to invest in areas or segments where TM’s fibre network is currently unavailable, we do not expect direct competition between the two operators in the medium term. Hence, we do not expect any near-term impact from this development."

Get 30% off with our ads free Premium Plan!

Monthly Plan

RM13.90/month
RM9.73 only

Billed as RM9.73 for the 1st month then RM13.90 thereafters.

Annual Plan

RM12.33/month
RM8.63/month

Billed as RM103.60 for the 1st year then RM148 thereafters.

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Business News

Aeon Credit 3Q net profit eases to RM62.07mil
Bilateral trade between Malaysia, South Korea hits RM100.6bil as of November
MRCB confirms withdrawal from KL-SG HSR consortium
Uzma secures RM44.15mil solar PV plant project in Kedah
United Malacca's net profit more than doubles to RM30.9mil in 2Q25
Lotus Circular to acquire Earthwise Resources, Expert Resource for RM100mil
Ringgit continues to extend loss on Fed’s hawkish turn
Poh Huat warns of uncertainties due to US dollar volatility
MoF: 22,000 scam cases totalling RM147mil in losses reported to NSRC as at Sept 2024
MyNews expects sales growth with the expansion of its store network.

Others Also Read