Maxis Bhd posted a 5.1% year-over-year increase in 1QFY25 net profit to RM371m on the back of lower depreciation and net interest costs. The results came in within our and consensus expectations, accounting for 25.4% and 25% of full-year estimates, respectively. Revenue came in flat as the increase in fibre, postpaid and device revenue was offset by lower contribution from the prepaid segment. We expect earnings to remain resilient in FY25F, supported by a steady domestic demand for affordable postpaid mobile services as well as fibre connectivity to homes. However, given the limited upside potential to our target price of RM3.90, we downgrade our rating from Trading Buy to Neutral. A first interim dividend per share of 4.0 sen was declared (1QFY24: 4.0 sen per share). – Public Investment Bank Bhd (May 19, 2025)
(Calls by analysts tracked by Bloomberg: 9 Buy, 13 Hold, 2 Sell; Consensus target price: RM3.99)
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