MBSB Investment Bank Bhd (MBSB Research) maintained its BUY recommendation on Maxis Bhd with an unchanged target price of RM4.05, implying a potential upside of 16.7% and a total expected return of 21.6% including a dividend yield of 4.9%, as analysts highlighted improving earnings momentum, strong sustainability credentials and a structured ESG framework.
MBSB Research said Maxis has delivered commendable profit growth in recent years, with PAT rising to RM1.56 billion in FY2025 from RM993 million in FY2023, reflecting steady operational improvement alongside a consistent dividend profile.
The research house noted that while profitability remains a key focus, the telco is increasingly aligning itself with global ESG expectations driven by investor demand, regulatory requirements under Malaysia’s National Sustainability Reporting Framework and broader stakeholder expectations for sustainable corporate behaviour.
The analyst added that Maxis’ ESG positioning is reinforced by recognised ratings, including an MSCI ESG rating of AA, a Morningstar Sustainalytics ESG risk score of 23.2 which indicates medium risk and a FTSE4Good Bursa Malaysia rating of 3.3 stars, reflecting strong overall environmental, social and governance performance.
According to MBSB Research, governance remains the foundation of Maxis’ ESG strategy, supported by its Integrity and Governance Unit which oversees ethics and compliance functions including complaints management, detection, integrity strengthening and governance oversight. The group has also implemented its ISO 37001:2025 anti-bribery management system, becoming the first telecommunications company in Malaysia to achieve the certification under the updated standard.
On the social front, Maxis has maintained a 90% employee engagement score while expanding digital support tools, including a generative AI-powered fibre troubleshooting system that has cut average handling time by 50%. The group also invested RM1.4 million in scholarship programmes in 2025 to support long-term talent development.
In terms of environmental initiatives, MBSB Research highlighted energy efficiency gains from its Centralised Self-Organising Network technology which delivered more than 11,700 megawatt hours of energy savings across base stations. Additional measures include infrastructure modernisation, equipment decommissioning and cooling optimisation at technical operations centres.
As of 11.32 am, the stock price is flat at RM3.47.
