Some Investors May Be Willing To Look Past Maxis Berhad's (KLSE:MAXIS) Soft Earnings
May 24
Malaysian (KLSE) Telecom Sector Analysis
UpdatedMay 30, 2024
DataAggregated Company Financials
Companies23
- 7D-3.8%
- 3M-4.2%
- 1Y-5.3%
- YTD1.3%
Over the last 7 days, the Telecom industry has dropped 3.8%, driven by Celcomdigi Berhad declining 4.9%. The industry has fallen 5.3% in the last year. As for the next few years, earnings are expected to grow by 17% per annum.
Sector Valuation and Performance
Has the Malaysian Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 30 May 2024 | RM138.1b | RM65.3b | RM4.7b | 22.3x | 29.2x | 2.1x |
| Sat, 27 Apr 2024 | RM140.3b | RM65.2b | RM4.6b | 19.9x | 30.2x | 2.1x |
| Mon, 25 Mar 2024 | RM142.5b | RM65.2b | RM4.7b | 21.4x | 30.6x | 2.2x |
| Wed, 21 Feb 2024 | RM146.0b | RM65.3b | RM214.2m | 20.3x | 681.7x | 2.2x |
| Fri, 19 Jan 2024 | RM139.4b | RM65.3b | RM215.4m | 20.6x | 647x | 2.1x |
| Sun, 17 Dec 2023 | RM135.8b | RM65.3b | RM215.4m | 22.8x | 630.3x | 2.1x |
| Tue, 14 Nov 2023 | RM138.2b | RM63.3b | -RM1,437,786,318.00 | 21.7x | -96.1x | 2.2x |
| Thu, 12 Oct 2023 | RM137.9b | RM63.2b | -RM1,414,189,318.00 | 20.9x | -97.5x | 2.2x |
| Sat, 09 Sep 2023 | RM141.8b | RM63.3b | -RM1,339,289,318.00 | 21.7x | -105.9x | 2.2x |
| Mon, 07 Aug 2023 | RM142.0b | RM60.7b | -RM892,353,640.00 | 15.2x | -159.1x | 2.3x |
| Wed, 05 Jul 2023 | RM139.7b | RM60.7b | -RM894,575,201.00 | 16.3x | -156.2x | 2.3x |
| Fri, 02 Jun 2023 | RM145.4b | RM60.8b | -RM817,703,201.00 | 15x | -177.8x | 2.4x |
| Sun, 30 Apr 2023 | RM148.9b | RM58.5b | -RM1,296,027,420.00 | 14.7x | -114.9x | 2.5x |
| Tue, 28 Mar 2023 | RM142.2b | RM58.5b | -RM1,211,995,420.00 | 14.9x | -117.3x | 2.4x |
| Thu, 23 Feb 2023 | RM145.7b | RM63.7b | RM4.0b | 16.1x | 36.1x | 2.3x |
| Sat, 21 Jan 2023 | RM144.3b | RM63.7b | RM4.0b | 14.3x | 36.1x | 2.3x |
| Mon, 19 Dec 2022 | RM134.9b | RM63.7b | RM4.0b | 18.4x | 33.8x | 2.1x |
| Wed, 16 Nov 2022 | RM120.6b | RM62.6b | RM4.4b | 19.4x | 27.4x | 1.9x |
| Fri, 14 Oct 2022 | RM106.1b | RM62.5b | RM4.4b | 16.8x | 23.9x | 1.7x |
| Sun, 11 Sep 2022 | RM122.8b | RM62.7b | RM4.4b | 17.9x | 27.7x | 2x |
| Tue, 09 Aug 2022 | RM120.6b | RM62.0b | RM4.5b | 19.6x | 26.5x | 1.9x |
| Thu, 07 Jul 2022 | RM111.8b | RM61.9b | RM4.6b | 19.8x | 24.1x | 1.8x |
| Sat, 04 Jun 2022 | RM123.8b | RM62.3b | RM4.8b | 20.6x | 25.8x | 2x |
| Mon, 02 May 2022 | RM133.6b | RM61.6b | RM4.8b | 20.7x | 27.6x | 2.2x |
| Wed, 30 Mar 2022 | RM137.7b | RM61.6b | RM5.0b | 17.4x | 27.8x | 2.2x |
| Fri, 25 Feb 2022 | RM141.7b | RM61.1b | RM5.2b | 17.8x | 27.5x | 2.3x |
| Sun, 23 Jan 2022 | RM141.4b | RM60.4b | RM4.8b | 19.4x | 29.7x | 2.3x |
| Tue, 21 Dec 2021 | RM139.6b | RM60.4b | RM4.8b | 19.7x | 29.3x | 2.3x |
| Thu, 18 Nov 2021 | RM150.6b | RM59.8b | RM4.9b | 18.7x | 31x | 2.5x |
| Sat, 16 Oct 2021 | RM157.8b | RM59.7b | RM4.9b | 20x | 32.2x | 2.6x |
| Mon, 13 Sep 2021 | RM155.5b | RM59.8b | RM5.0b | 21x | 31.4x | 2.6x |
| Wed, 11 Aug 2021 | RM146.1b | RM59.8b | RM5.0b | 21.8x | 29.5x | 2.4x |
| Sun, 06 Jun 2021 | RM146.3b | RM58.5b | RM4.7b | 26.1x | 30.9x | 2.5x |
Price to Earnings Ratio
30.9x
Current Industry PE
- Investors are pessimistic on the Malaysian Communication Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 29.2x which is lower than its 3-year average PE of 34.9x.
- The industry is trading close to its 3-year average PS ratio of 2.2x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 3.8% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the Malaysian Telecom sector?
| MY Market | -1.00% | |
| Telecom | -3.81% | |
| Interactive Media and Services | 6.48% | |
| Media | 1.91% | |
| Entertainment | 0% | |
| Telecom Services and Carriers | -1.67% | |
| Wireless Telecom | -4.75% | |
Industry PE
- Investors are most optimistic about the Wireless Telecom industry which is trading above its 3-year average PE ratio of 11.5x.
- Analysts are expecting annual earnings growth of 21.9%, which is higher than its past year's earnings decline of 13.3% per year.
- Investors are most pessimistic about the Interactive Media and Services industry, which is trading below its 3-year average of 266x.
Forecasted Growth
- Analysts are most optimistic on the Media industry, expecting annual earnings growth of 26% over the next 5 years.
- This is better than its past earnings decline of 7.5% per year.
- In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 3.4% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| CATCHA Catcha Digital Berhad | RM0.39 | 23.8% +RM26.4m | 52.9% | PE93.8x | |
| MEDIA Media Prima Berhad | RM0.46 | 1.1% +RM5.5m | 13.6% | PE11.8x | |
| INNITY Innity Corporation Berhad | RM0.43 | 4.8% +RM2.8m | 8.8% | PS0.5x |
