CelcomDigi Berhad is a leading telecommunications and digital services company based in Malaysia. It was formed through the merger ofAxiata’s subsidiary Celcom and Telenor Asia’s subsidiary Digi. The company is now the largest mobile network operator in the country. With a combined wealth of experience and resources, CelcomDigi provides innovative digital solutions and superior connectivity to its customers.
The company offers a wide range of telecommunication services, including voice, SMS, data, and digital content. CelcomDigi operates on a robust network infrastructure, covering a vast majority of the Malaysian population. By leveraging its extensive network and digital capabilities, the company aims to drive digital transformation. CelcomDigi’s shares are traded on the Bursa Malaysia under the ticker code CDB.
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CelcomDigi EPS and Revenue Breakdown 2020-2023
| Source: TradingView | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | MYR 0.16 | MYR 6.15 billion |
| 2021 | MYR 0.15 | MYR 6.34 billion |
| 2022 | MYR 0.09 | MYR 6.77 billion |
| 2023 | MYR 0.14 | MYR 12.68 billion |
Telecommunications Industry Comparison
CelcomDigi Share Price, Chart & Dividend Yield
While most analysts are either bullish or have a hold rating on the stock, CelcomDigi shares haven’t performed too well of late, down more than 16% in the last 12 months. While most analysts seem to find the current share price attractive, one publication has cited what it describes as the company’s “weak financial prospects” as a reason for the share price decline.
Dividend Yield: 1.44%
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CDB Share Price Forecast
The Bull Argument: BIMB analysts attended the CelcomDigi ESG Day 2024 and said they believe CDB’s “comprehensive ESG priorities reflect a well-rounded approach that enhances the company’s reputation and stakeholder trust while mitigating risks and opening new opportunities for innovation and efficiency.” Additionally, they said the launch of the CelcomDigi AI Experience Centre (AiX) will enhance awareness within enterprise communities.
“Given that telco players cannot impose additional charges for 5G services on consumers, increased awareness and higher adoption of 5G technology among enterprises will be pivotal in driving CDB’s future earnings,” added BIMB. “CDB’s proactive stance and comprehensive strategies ensure it remains a leader in sustainable business practices, wellprepared to navigate future challenges and capitalize on emerging opportunities in the digital and green economies.”
The Bear Argument: While actually keeping a Hold rating on the stock, analysts at RHB-OSK said following the company’s 1Q24 results that the network integration is tracking well, but it continues to cede revenue market share (RMS) to the green camp with ARPU compression. The firm believed (as of June 29) that the company’s current valuation is fair, given the execution and regulatory risks.
Average Analyst Consensus 12-Month Price Target: MYR 7.35
Who Should Buy CelcomDigi Shares
CelcomDigi presents an investment opportunity within the dynamic telecommunications sector. However, it can be tricky to identify companies that suit your investment criteria and goals. Below are some investor profiles that may find CelcomDigi appealing:
Telecommunications Sector Investors: If you seek exposure to the growing telecommunications industry in Malaysia, CelcomDigi is a prime candidate. As the largest mobile network operator, it offers investors a significant stake in a dominant market player.
Dividend-Seeking Investors: CelcomDigi has a history of distributing dividends to shareholders. Investors seeking regular income streams may find the company attractive, though it’s essential to consider dividend sustainability and payout ratios.
Long-Term Growth Investors: Those with a long-term investment horizon who believe in the continued growth of Malaysia’s digital economy and the expansion of telecommunications services may find CelcomDigi a suitable investment. The company’s focus on digital innovation and network expansion could drive future growth.
Risk-Tolerant Investors: Given the competitive nature of the telecommunications industry, investors with a higher risk tolerance may be interested in CelcomDigi. The company’s ability to adapt to technological advancements and maintain its market leadership will be crucial to its long-term success.
