ASEAN Telecommunications: Time for a Relook Amidst a "Broadening" Debate

Research evidence excerpt

ASEAN Telecommunications: Time for a Relook Amidst a "Broadening" Debate

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24 Jul 2026 11:55:44 ET │ 20 pages

ASEAN Telecommunications

Time for a Relook Amidst a “Broadening” Debate

CITI'S TAKE

Arthur Pineda AC

ASEAN markets and particularly ASEAN telcos have broadly +65-6657-1174

underperformed across ASEAN YTD with earlier investor preference for arthur.pineda@citi.com

higher beta sectors/markets. Some names in the telco sector now offer

attractive relative value and backed by positive operating momentum into Luis Hilado

2Q26 on the back of healthy price competition (ex-Singapore), positive +65-6657-1170

mobile pricing trends and cost cut initiatives. The current widening of luis.hilado@citi.com

investor focus beyond AI/tech and progress in asset monetization exercises

serve to potentially revive interest into underperforming, yet fundamentally

solid names. We also stress that the sector remains well insulated from

potential macro risks from the ME conflict re-escalation. Our preferred

telcos are Indosat, True Corp, PLDT and PT Telkom. These names offer

multiple factor combinations on value/yield/growth/spin-offs.

Not a crowded trade — Asian Telcos had underperformed MSCI AP by ~17% YT15Jul

with investor focus into AI/tech thematic trade sectors. ASEAN markets had

underperformed with investor crowding into higher beta markets such as

Korea/Taiwan. Within the ASEAN markets, which have mostly lagged, telcos have

similarly underperformed with investors crowing into higher beta sectors such as

tech/energy. The debate on investor trade broadening (ref: EM Equity Strategy

Compass - 2H26 Outlook: The Broadening Question) raises questions of whether

the sector can potentially benefit from a widening investor lens given tech volatility.