TM: A Drag by Write-down

Telekom Malaysia’s (TM) 1QFY26 net profit of RM321.5m came in slightly below our and consensus expectations at 19%. During the quarter, the Group recorded a write-down of RM127.3m in relation to the unutilised prepaid capacity of 5G multi-operator core network (MOCN) services.

TM

“Barring some of the recent developments, we believe that TM’s medium to long term outlook remain intact due to the demand for connectivity and AI. Maintain Outperform with a lower TP of RM8.56 (previously RM8.80) following our earnings revision and housekeeping,” says PublicInvest.

An interim dividend of 6.5 sen was announced, representing a payout of 78%, which is in-line with the recent change in its dividend policy. 

#businessness