TIME dotCom Berhad: Valuations to compound with earnings – initiate with OW

研报英文原文证据摘录

TIME dotCom Berhad: Valuations to compound with earnings – initiate with OW

Ranjan Sharma, CFA AC Asia Pacific Equity Research

(65) 6882-1303 28 June 2026 J P M O R G A N

ranjan.x.sharma@jpmorgan.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

TDC offers a differentiated combination of lower pricing,

above-industry growth, higher margins and attractive returns on

capital, underpinned by a superior cost structure. Our double-

digit EPS CAGR over 2025-28E appears exceptional in a

telecom industry where growth has remained challenged for

over 10 years. We see the possibility of investors reallocating

capital to TDC from other Malaysian telcos. This is especially

true as TDC’s ongoing debt recapitalization initiative supports

higher dividends and makes it appealing to income-seeking

YTD 1m 3m 12m investors. We foresee TDC’s valuation multiples sustaining and

Abs 7.3% -2.9% 0.7% 13.2% earnings growth driving the share price higher.

Rel 8.0% -1.1% 3.2% 4.1%

Valuation

Company Data

We derive a Dec-27 PT of RM7.30 at a 1yr forward P/E of 22x,

Shares O/S (mn) 1,849

52-week range (RM) 6.46-4.38 in line with the current trading multiple, but higher than the

Market cap ($ mn) 2,694 average of 19x over the last 10 years. In our view, the earnings

Exchange rate 4.12 multiples are likely to sustain themselves, as a structural cost

Free float (%) 73.1%

3M ADV (mn) 3.00 advantage enables a long runway of superior growth vs. the

3M ADV ($ mn) 4.4 industry, and ongoing recapitalization initiatives support the

Volatility (90 Day) 21 return of capital to shareholders. As multiples are sustained,

Index FBMKLCI - FTSE BURSA MALAYSIA KLCI

BBG ANR (Buy | Hold | Sell) 3|7|0 earnings growth is likely to drive share prices higher. We also