MBSB Investment Bank Bhd (MBSB Research) maintained its BUY call on CelcomDigi Bhd with an unchanged target price of RM3.54, implying 20% share price upside and an expected total return of 25.4%, as the telecommunications group continues embedding sustainability into its business strategy.
MBSB Research said CelcomDigi’s five-year ESG strategy, launched in 2024, focuses on building an inclusive, sustainable and trusted digital society. The research house said the group’s sustainability credentials remain strong, with a 3.9 FTSE4Good Bursa Malaysia rating, a ‘Medium Risk’ Sustainalytics score of 23.4 and an ‘A’ MSCI rating.
CelcomDigi was previously rated AA by MSCI but MBSB Research attributed the downgrade to changes in methodology and greater emphasis on privacy and data security. It expects the group could regain its previous rating as disclosures improve.
The ESG roadmap centres on inclusive and safe digital access, a sustainable value chain, stronger governance and reducing environmental impact. MBSB Research noted that CelcomDigi cut combined Scope 1 and Scope 2 emissions by 4% across financial years 2024 and 2025, with further reductions targeted.
On the social front, its S.A.F.E. Internet programme and related initiatives have reached more than 18 million Malaysians through online safety, scam awareness and digital literacy campaigns, alongside SME digitalisation support.
MBSB Research said the group’s governance framework also continues to emphasise board oversight, risk management, data protection and accountability under the Malaysian Code on Corporate Governance.
As of 10.17 am, the stock price slips 1.68% to RM2.93.
