TM 'Terrorizing' On Bursa Malaysia - Kakiforex.com - Financial Market Media No. 1 in the World TM 'Terrorizing' On Bursa Malaysia TM 'Terrorizing' On Bursa Malaysia
InstaForex

May 28, 2021

TM 'Terrorizing' On Bursa Malaysia

 Telekom Malaysia Bhd (TM) became one of the most profitable stocks on Bursa Malaysia during this morning's trading session after recording a strong financial performance for the first quarter ended March 31, 2021 (1QFY21).


At 10.15am, TM shares jumped 33 sen or 5.59% to RM6.23 from RM5.90 at the close yesterday, with 3.86 million shares changing hands.


In a statement to Bursa Malaysia yesterday, the major telco said its net profit doubled to RM325.47 million in 1QFY21 from RM152.52 million in the same quarter of financial year 2020.


Bernama reported that TM explained that the strong performance was driven by higher revenue in all segments apart from its other telecommunications services.


According to research by Maybank Investment Bank Bhd, TM's main net profit of RM332 million, an increase of 38% year -on -year, is 30% of its projection for financial year 2021 (FY21) and by consensus.


“The overall outlook remains encouraging with TM potentially benefiting from the work -from -home environment and the implementation of 5G as well as continued cost optimization.



"Therefore, we reiterate the 'buy' recommendation with an unchanged target price of RM7.40," he explained in a research note today.


MIDF Amanah Investment Bank Bhd's research was similar in maintaining a 'buy' rating on TM with an unchanged target price of RM6.91.


The research arm of the investment bank views the MYDIGITAL initiative as a good sign for the company.


“Based on that, we expect TM's revenue growth for the coming years to remain strong. In addition, we commend the company's cost rationalization program which has significantly increased its profitability, ”he explained in a separate research note.


Meanwhile, Public Investment Bank Bhd improved its recommendation on TM to ‘outperform’ from ‘neutral’, with a higher target price of RM6.90 from RM6.60.


"As the largest domestic data center provider in Malaysia, we are confident that TM will benefit from higher data and Internet usage in the future, following the government's plan to set up a very large -scale data center under the MyDIGITAL initiative," he said.