CGS Upgrades MAXIS to Buy After 9M Earnings Beat, Highlights Attractive Valuation and 5.9% Yield

Ng Han Siang (Einod) · November 10, 2026

AI-assisted, reviewed by Ng Han Siang (Einod)

CGS International analyst Prem Jearajasingam upgraded Maxis to “Add” from “Hold”, retaining his RM3.72 target price. This implies 6.3% upside, or approximately 12.2% total return, including a projected 5.9% dividend yield for 2026. 3Q26 core net profit rose 8.5% YoY to RM447 million, supported by higher service revenue and lower depreciation and amortisation expenses. This took 9M26 earnings to RM1.3 billion, exceeding his expectations.

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Following a 4.6% share-price decline over three months, Prem considers valuations attractive at approximately 17 times projected 2027 earnings, below its average since 2021. He raised 2026–2028 core-profit forecasts by 16.5%, 6.5% and 10.4%, respectively. Revisions include delaying the assumed recognition of Digital Nasional’s losses to December 2026 from July and removing assumed capital injections into DNB in 2027–2028 following its debt refinancing.

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Prem believes potential industry consolidation could slow pricing erosion and improve longer-term profitability, although management did not confirm the reported U Mobile merger discussions. He also recognises the possibility of stronger competition if the existing industry structure persists. Consequently, a higher cost-of-equity assumption offsets the earnings upgrades, leaving his target price unchanged. Continued delivery of strong results remains his key re-rating catalyst.

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As of 10:03 a.m. on November 10, Maxis’ share price fell 0.9% to RM3.47.

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Disclaimer: All content is AI-aggregated from public sources for informational and educational purposes only. StockTipRatings.com does not constitute investment advice. Past performance and historical statistics are no guarantee of future returns.

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