Here's Why Binasat Communications Berhad (KLSE:BINACOM) Can Manage Its Debt Responsibly
Oct 05
Malaysian (KLSE) Telecom Sector Analysis
UpdatedDec 04, 2023
DataAggregated Company Financials
Companies23
- 7D-0.2%
- 3M-3.6%
- 1Y-4.4%
- YTD-0.7%
The Telecom industry has stayed flat over the last week. Unfortunately though, the industry is down 4.4% over the past 12 months. As for the next few years, earnings are expected to grow by 28% 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 |
|---|---|---|---|---|---|---|
| Mon, 04 Dec 2023 | RM136.6b | RM65.3b | RM257.9m | 20.3x | 529.7x | 2.1x |
| Wed, 01 Nov 2023 | RM135.0b | RM63.2b | -RM1,417,561,318.00 | 21.7x | -95.2x | 2.1x |
| Fri, 29 Sep 2023 | RM140.9b | RM63.2b | -RM1,414,189,318.00 | 22.6x | -99.7x | 2.2x |
| Sun, 27 Aug 2023 | RM142.1b | RM62.4b | -RM659,897,364.00 | 14.9x | -215.3x | 2.3x |
| Tue, 25 Jul 2023 | RM141.9b | RM60.7b | -RM894,575,201.00 | 15.4x | -158.6x | 2.3x |
| Thu, 22 Jun 2023 | RM140.4b | RM60.7b | -RM894,575,201.00 | 16.9x | -156.9x | 2.3x |
| Sat, 20 May 2023 | RM148.3b | RM58.5b | -RM1,272,437,057.00 | 13.4x | -116.5x | 2.5x |
| Mon, 17 Apr 2023 | RM147.6b | RM58.5b | -RM1,283,873,420.00 | 15.6x | -115x | 2.5x |
| Wed, 15 Mar 2023 | RM139.1b | RM58.5b | -RM1,211,995,420.00 | 14.9x | -114.8x | 2.4x |
| Fri, 10 Feb 2023 | RM142.2b | RM63.7b | RM4.0b | 14.1x | 35.6x | 2.2x |
| Sun, 08 Jan 2023 | RM138.2b | RM63.7b | RM4.0b | 19.1x | 34.6x | 2.2x |
| Tue, 06 Dec 2022 | RM140.3b | RM63.7b | RM4.1b | 19.7x | 34.3x | 2.2x |
| Thu, 03 Nov 2022 | RM121.0b | RM62.5b | RM4.4b | 19.4x | 27.4x | 1.9x |
| Sat, 01 Oct 2022 | RM113.6b | RM62.5b | RM4.4b | 17x | 25.5x | 1.8x |
| Mon, 29 Aug 2022 | RM125.8b | RM62.6b | RM4.4b | 19.2x | 28.8x | 2x |
| Wed, 27 Jul 2022 | RM114.5b | RM61.8b | RM4.6b | 19.4x | 25x | 1.9x |
| Fri, 24 Jun 2022 | RM111.2b | RM62.2b | RM4.8b | 18.9x | 23.4x | 1.8x |
| Sun, 22 May 2022 | RM123.8b | RM61.6b | RM4.8b | 20.2x | 25.7x | 2x |
| Tue, 19 Apr 2022 | RM135.3b | RM61.5b | RM4.9b | 19.1x | 27.6x | 2.2x |
| Thu, 17 Mar 2022 | RM141.4b | RM61.6b | RM5.0b | 16.8x | 28.6x | 2.3x |
| Sat, 12 Feb 2022 | RM146.6b | RM60.5b | RM4.8b | 20x | 30.7x | 2.4x |
| Mon, 10 Jan 2022 | RM144.8b | RM60.4b | RM4.8b | 20.3x | 30.4x | 2.4x |
| Wed, 08 Dec 2021 | RM142.5b | RM60.5b | RM4.8b | 20.2x | 29.6x | 2.4x |
| Fri, 05 Nov 2021 | RM150.7b | RM59.8b | RM4.9b | 18.9x | 31.1x | 2.5x |
| Sun, 03 Oct 2021 | RM151.5b | RM59.7b | RM4.9b | 20.5x | 30.9x | 2.5x |
| Tue, 31 Aug 2021 | RM154.2b | RM59.8b | RM5.0b | 21.1x | 31.1x | 2.6x |
| Wed, 07 Jul 2021 | RM143.9b | RM59.8b | RM5.0b | 20.5x | 29x | 2.4x |
| Sat, 10 Apr 2021 | RM138.8b | RM58.5b | RM4.7b | 24.5x | 29.8x | 2.4x |
| Fri, 01 Jan 2021 | RM142.5b | RM58.4b | RM4.6b | 26.4x | 30.7x | 2.4x |
Price to Earnings Ratio
28x
Current Industry PE
- Investors are optimistic on the Malaysian Communication Services industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 530x which is higher than its 3-year average PE of -10.5x.
- 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 declined 62% per year over the last three years.
- Meanwhile revenues for these companies have grown 3.6% 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, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Malaysian Telecom sector?
| MY Market | -0.55% | |
| Telecom | -0.21% | |
| Telecom Services and Carriers | 0.07% | |
| Entertainment | 0% | |
| Wireless Telecom | -0.15% | |
| Interactive Media and Services | -2.26% | |
| Media | -4.62% | |
Industry PE
- Investors are most optimistic about the Media industry which is trading above its 3-year average PE ratio of 16.9x.
- Analysts are expecting annual earnings growth of 22.7%, which is higher than its past year's earnings decline of 51.5% per year.
Forecasted Growth
- Analysts are most optimistic on the Wireless Telecom industry, expecting annual earnings growth of 35% over the next 5 years.
- This is better than its past earnings decline of 0.7% per year.
- In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 6.0% 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 | |
|---|---|---|---|---|---|
| CDB Celcomdigi Berhad | RM4.24 | 1.4% +RM703.9m | 6.3% | PE42.9x | |
| TM Telekom Malaysia Berhad | RM5.30 | 0.4% +RM77.6m | -5.5% | PE12.7x | |
| OCK OCK Group Berhad | RM0.41 | 2.5% +RM10.5m | -4.7% | PE11.3x |