Some Investors May Be Worried About Maxis Berhad's (KLSE:MAXIS) Returns On Capital
Apr 22
Malaysian (KLSE) Telecom Sector Analysis
UpdatedApr 22, 2024
DataAggregated Company Financials
Companies23
- 7D-1.5%
- 3M-4.3%
- 1Y-8.5%
- YTD-0.4%
Over the last 7 days, the Telecom industry has dropped 1.5%, driven by a pullback from Astro Malaysia Holdings Berhad of 6.2%. Overall the industry is down 8.5% in 12 months. 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 |
|---|---|---|---|---|---|---|
| Tue, 23 Apr 2024 | RM135.7b | RM65.2b | RM4.6b | 19.8x | 29.3x | 2.1x |
| Thu, 21 Mar 2024 | RM140.3b | RM65.5b | RM4.7b | 21.9x | 30.1x | 2.1x |
| Sat, 17 Feb 2024 | RM143.4b | RM65.3b | RM214.2m | 20.9x | 669.4x | 2.2x |
| Mon, 15 Jan 2024 | RM140.6b | RM65.3b | RM215.4m | 23.5x | 652.6x | 2.2x |
| Wed, 13 Dec 2023 | RM133.9b | RM65.3b | RM257.9m | 20.3x | 519.3x | 2.1x |
| Fri, 10 Nov 2023 | RM138.8b | RM63.2b | -RM1,416,786,318.00 | 21.9x | -97.9x | 2.2x |
| Sun, 08 Oct 2023 | RM138.2b | RM63.2b | -RM1,414,189,318.00 | 20.8x | -97.7x | 2.2x |
| Tue, 05 Sep 2023 | RM141.6b | RM63.3b | -RM1,339,289,318.00 | 22.6x | -105.7x | 2.2x |
| Thu, 03 Aug 2023 | RM143.0b | RM60.7b | -RM892,353,640.00 | 15.7x | -160.2x | 2.4x |
| Sat, 01 Jul 2023 | RM138.8b | RM60.7b | -RM894,575,201.00 | 16.6x | -155.1x | 2.3x |
| Mon, 29 May 2023 | RM147.5b | RM60.8b | -RM809,818,388.00 | 13.2x | -182.1x | 2.4x |
| Wed, 26 Apr 2023 | RM148.7b | RM58.5b | -RM1,281,469,420.00 | 14.5x | -116x | 2.5x |
| Fri, 24 Mar 2023 | RM144.3b | RM58.5b | -RM1,211,995,420.00 | 15.1x | -119x | 2.5x |
| Sun, 19 Feb 2023 | RM146.2b | RM63.7b | RM4.0b | 14.1x | 36.6x | 2.3x |
| Tue, 17 Jan 2023 | RM140.6b | RM63.7b | RM4.0b | 18.5x | 35.2x | 2.2x |
| Thu, 15 Dec 2022 | RM138.8b | RM63.7b | RM4.1b | 19.4x | 33.9x | 2.2x |
| Sat, 12 Nov 2022 | RM123.3b | RM62.6b | RM4.4b | 19x | 28x | 2x |
| Mon, 10 Oct 2022 | RM113.2b | RM62.5b | RM4.4b | 17.5x | 25.4x | 1.8x |
| Wed, 07 Sep 2022 | RM122.0b | RM62.7b | RM4.4b | 18.3x | 27.5x | 1.9x |
| Fri, 05 Aug 2022 | RM122.2b | RM62.0b | RM4.5b | 19.6x | 26.9x | 2x |
| Sun, 03 Jul 2022 | RM115.4b | RM61.9b | RM4.6b | 19.8x | 24.9x | 1.9x |
| Tue, 31 May 2022 | RM124.7b | RM62.2b | RM4.8b | 17.5x | 26.1x | 2x |
| Thu, 28 Apr 2022 | RM133.8b | RM61.5b | RM4.9b | 19.7x | 27.3x | 2.2x |
| Sat, 26 Mar 2022 | RM140.8b | RM61.6b | RM5.0b | 17.6x | 28.4x | 2.3x |
| Mon, 21 Feb 2022 | RM146.8b | RM60.5b | RM4.8b | 20.2x | 30.7x | 2.4x |
| Wed, 19 Jan 2022 | RM143.5b | RM60.4b | RM4.8b | 20.1x | 30.2x | 2.4x |
| Fri, 17 Dec 2021 | RM139.5b | RM60.4b | RM4.8b | 19.9x | 29.3x | 2.3x |
| Sun, 14 Nov 2021 | RM151.3b | RM59.8b | RM4.9b | 18.5x | 31.2x | 2.5x |
| Tue, 12 Oct 2021 | RM153.5b | RM59.7b | RM4.9b | 20.6x | 31.3x | 2.6x |
| Thu, 09 Sep 2021 | RM155.1b | RM59.8b | RM5.0b | 21.1x | 31.3x | 2.6x |
| Sat, 07 Aug 2021 | RM145.3b | RM59.8b | RM5.0b | 21.9x | 29.3x | 2.4x |
| Fri, 30 Apr 2021 | RM144.7b | RM58.5b | RM4.7b | 26.1x | 30.6x | 2.5x |
Price to Earnings Ratio
30.6x
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 29.3x 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 2.3x.
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 3.7% 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 | -1.15% | |
| Telecom | -1.50% | |
| Entertainment | 0% | |
| Telecom Services and Carriers | -0.27% | |
| Wireless Telecom | -1.86% | |
| Interactive Media and Services | -1.95% | |
| Media | -3.70% | |
Industry PE
- Investors are most optimistic about the Wireless Telecom industry which is trading above its 3-year average PE ratio of 11.1x.
- Analysts are expecting annual earnings growth of 21.8%, which is higher than its past year's earnings decline of 13.8% per year.
- Investors are most pessimistic about the Interactive Media and Services industry, which is trading below its 3-year average of 298x.
Forecasted Growth
- Analysts are most optimistic on the Media industry, expecting annual earnings growth of 25% over the next 5 years.
- This is better than its past earnings decline of 9.0% per year.
- In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 3.5% 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 | |
|---|---|---|---|---|---|
| AXIATA Axiata Group Berhad | RM2.62 | 4.4% +RM1.0b | -12.7% | PS1.1x | |
| MAXIS Maxis Berhad | RM3.52 | 1.7% +RM469.9m | -18.9% | PE27.8x | |
| CDB Celcomdigi Berhad | RM4.11 | 0.7% +RM351.9m | -6.2% | PE31.1x | |
| TM Telekom Malaysia Berhad | RM6.10 | 1.0% +RM230.3m | 23.7% | PE12.5x | |
| TIMECOM TIME dotCom Berhad | RM5.21 | 2.0% +RM184.9m | -4.6% | PE33.7x |
