Various research houses remained bullish on Telekom Malaysia Bhd, with RHB Research, CIMB Securities and HLIB maintaining BUY calls. Target prices range from RM8.90 to RM9.30, with analysts pointing to the group’s data centre expansion as an increasingly important growth driver.
RHB Research kept its RM9.30 target price, saying TM’s structural growth drivers and cost discipline could support a 14% FY26-FY28 core earnings CAGR. HLIB raised its target price to RM9.10 from RM8.60 after rolling forward its DCF valuation, while CIMB lifted its target to RM8.90 from RM8.20.
TM’s 2Q26 core profit fell 7% quarter-on-quarter to RM406 million but rose 6% year-on-year, bringing 1H26 core earnings to RM843 million, or 49% of full-year consensus expectations. The company declared a second interim dividend of seven sen per share, taking 1H26 dividends to 13.5 sen.
The data centre story is gaining traction, with TM Nxera’s Phase 1 capacity around 70% contracted. The initial 20MW is expected to be ready for service in September, followed by the remaining 44MW in 1Q27. TM’s Iskandar Puteri data centre has also reached full utilisation.
RHB said TM could benefit from measurable cost savings after completing its exit from Digital Nasional Bhd’s 5G network in July, while CIMB expects TM Global’s revenue to strengthen as upgraded subsea cable capacity and U Mobile’s second 5G network support demand.
As of 9.55 am, the stock price rose 2.72% to RM7.88.
