Maxis Berhad: Takeaways from the J.P. Morgan ASEAN TMT & Fintech Forum

Research evidence excerpt

Maxis Berhad: Takeaways from the J.P. Morgan ASEAN TMT & Fintech Forum

J P M O R G A N Asia Pacific Equity Research

07 July 2026

Maxis Berhad Neutral

MXSC.KL, MAXIS MK

Takeaways from the J.P. Morgan ASEAN TMT & Price (07 Jul 26):RM3.41

Fintech Forum ▼Price Target (Jun-27):RM3.65 Prior (Dec-26):RM3.90

We hosted Maxis in our ASEAN TMT & Fintech Forum. In our view, Maxis’ FCFs

are likely to remain healthy. This should support dividends with the potential for ASEAN TMT

upside. Maxis continues to invest in fiber to capture revenue opportunities from Ranjan Sharma, CFA AC

households, enterprises, and wholesale. Fiber should continue to support growth (65) 6882-1303

in revenues. MSAP could reduce wholesale access costs for fiber broadband. ranjan.x.sharma@jpmorgan.com

J.P. Morgan Securities Singapore Private Limited

However, we anticipate cost savings to be passed on to consumers in a competitive

Sigrid Qiuenvironment. Competitive pressures are likely to continue to weigh on mobile

(65) 6882-1454

revenues, in our view. We remain Neutral on Maxis. sigrid.qiu@jpmorgan.com

• FCFs are supportive of dividends. Maxis is targeting capex of 10-12% of Yen Voo, CFA, CA

sales while its EBITDA margin is at ~41% (2026E JPMe). We calculate

(60-3) 2718 0914

2026/27E FCF of RM1,184/1,539m (after accounting for DNB losses) which yen.voo@jpmorgan.com

more than covers its total dividend of RM1.4bn for FY25. Maxis has paid JPMorgan Securities (Malaysia) Sdn. Bhd. (18146-

RM328m to acquire a stake in DNB this year, which would weigh on its FCF. X)

However, going forward, there might not be further capital investments in Ankur Rudra, CFA

DNB as DNB could raise debt to meet its capital requirements. The excess FCF (65) 6801-3237

ankur.rudra@jpmorgan.com

could be used to support dividends. J.P.