Phillip Capital Research said it believes OCK is well-positioned to capture opportunities in Malaysia’s evolving digital infrastructure landscape.
PETALING JAYA: Telecoms infrastructure players may be major beneficiaries in 2025, with the roll out of the second 5G network and expansion of the National Digital Network or Jendela Internet initiative.
This involves the deployment of more sites and cell towers, alongside upgrades to existing 4G infrastructure.
Phillip Capital Research said the dual 5G network and Jendela initiatives are expected to drive significant opportunities, supporting revenue growth and operational stability.
The research house has forecast 64% year-on-year earnings growth for the sector in 2025.
Phillip Capital Research has an “overweight” stance on the telecommunication sector, reflecting its favourable growth prospects for 2025.
For sector exposure, it retained its “buy” call on OCK Group Bhd
with a target price of 85 sen a share.
The research house said it believes OCK is well-positioned to capture opportunities in Malaysia’s evolving digital infrastructure landscape given its strong position in contracting and engineering services, alongside recurring revenue from tower leasing and its managed-services divisions.
Some tough decisions would need to be made by U Mobile as it needs to provide clarity on its eventual choice of partner in the deployment of the second 5G network after being appointed the second 5G network provider by the Malaysian Communications and Multimedia Commission last month.
The dual 5G network initiative and second phase of Jendela provides strong tailwinds for infrastructure-focused businesses, the research house said.
Increasing demand for network enhancements and site rollouts will benefit players across the value chain, particularly those involved in tower construction, leasing and maintenance such as OCK and Edotco Group.
