Company Coverage
Maxis (MAXIS MK): 2Q26: Strong Quarter; Good Cost Control Led To Margin Expansion
BUY (Maintained)
Current price:
Target price:
Upside:
RM3.70
RM4.20
13.5%
Analyst
Highlights
- Maxis reported a strong 2Q26 net profit of RM436m (+10% yoy) on the back of a 2% yoy service revenue growth and cost discipline. EBITDA-to-service revenue margin expanded to 50% amid good cost control.
- 1H26 net profit of RM853m is within house and street estimates.
- Maintain BUY on share price weakness with a DCF-based target price of RM4.20. The stock offers a 5% dividend yield.
Analysis
- 2Q26: A strong set of earnings. Maxis reported strong 2Q26 net profit of RM436m (+10% yoy; +5% qoq), driven by a 2% yoy service revenue growth and 1ppt qoq increase in EBITDA-to-service revenue margin of 50%. Good cost discipline lifted 2Q26 net profit margin to 16.4% vs 15.5% in 2Q25. Accounting for 53% of our and consensus full-year estimates, we deem results in line with expectations.
Highlights
- Maxis reported a strong 2Q26 net profit of RM436m (+10% yoy) on the back of a 2% yoy service revenue growth and cost discipline. EBITDA-to-service revenue margin expanded to 50% amid good cost control.
- 1H26 net profit of RM853m is within house and street estimates.
- Maintain BUY on share price weakness with a DCF-based target price of RM4.20. The stock offers a 5% dividend yield.
Analysis
- 2Q26: A strong set of earnings. Maxis reported strong 2Q26 net profit of RM436m (+10% yoy; +5% qoq), driven by a 2% yoy service revenue growth and 1ppt qoq increase in EBITDA-to-service revenue margin of 50%. Good cost discipline lifted 2Q26 net profit margin to 16.4% vs 15.5% in 2Q25. Accounting for 53% of our and consensus full-year estimates, we deem results in line with expectations.
BUY (Maintained)
Current price:
Target price:
Upside:
RM3.70
RM4.20
13.5%
Analyst
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