KENANGA Research reiterates its “market perform” call on Maxis Bhd with a RM6.87 target price as the group sails the transformation wave.
“Maxis is targeting to grow its enterprise business in the ‘home’ segment, although the detailed roadmap is yet to be finalised.
“Its smartphone penetration rate is expected to continue growing amid the increasing affordable devices introduced by various phone makers.
“With higher smartphone usage rate coupled with more worry-free as well as affordable entry-level data plans, Maxis believes it could drive mobile Internet use further.
“We expect the group’s data revenue to exceed its voice and short message service (SMS) revenue by early financial year 2017.
“Maxis also plans to focus on providing pure fibre services by riding Telekom Malaysia’s backhaul to the enterprise segment while awaiting for the commercial negotiation with Astro to be finalised by year-end.
“We understand that the group plans to tackle its one million corporate customers with total customised solution services for both fixed line as well as mobile users, namely cloud computing and managed services capabilities.
“There is no change in our earnings forecast following the company visit,” Kenanga said in its report yesterday.
According to the research house, the group’s blended smartphone penetration rate stood at 48 per cent as at the end of the second quarter versus 43 per cent in the first quarter.
“Its penetration rate in the prepaid segment was merely 43 per cent, compared with 64 per cent in the postpaid division. Thus suggesting room for growth in the future, underpinned by more affordable smartphones being introduced by phone makers.”