Company Coverage
CelcomDigi (CDB MK): 2Q26: In Line; Raised 2026 Opex Savings To RM470m
BUY (Maintained)
Current price:
Target price:
Upside:
RM2.84
RM4.05
42.8%
Analyst
Highlights
- CelcomDigi reported sequentially higher 2Q26 core net profit of RM430m, reflecting average revenue per account growth of 2% qoq and 8% yoy as well as RM100m in synergistic opex savings in the quarter.
- Key highlights from 2Q26 are: a) DNB will be equity accounted in 4Q26, with minimal earnings impact in 2026 and no cash call expected from DNB in the foreseeable years; and b) management raising 2026 synergistic opex savings to RM470m.
- Maintain BUY with a DCF-based target price of RM4.05. The stock offers attractive dividend yield of 5.2%.
Analysis
- 2Q26 core earnings in line. CelcomDigi reported a 3% qoq increase in 2Q26 underlying net profit of RM430m (-1% yoy). Underlying net profit excludes a RM32m settlement cost and stamp due, which we gather will be minimal in the coming quarter. 1H26 underlying net profit of RM848m (-2% yoy) accounted for 48% and 47% of house and street’s 2026 full-year forecasts respectively, within expectations.
Highlights
- CelcomDigi reported sequentially higher 2Q26 core net profit of RM430m, reflecting average revenue per account growth of 2% qoq and 8% yoy as well as RM100m in synergistic opex savings in the quarter.
- Key highlights from 2Q26 are: a) DNB will be equity accounted in 4Q26, with minimal earnings impact in 2026 and no cash call expected from DNB in the foreseeable years; and b) management raising 2026 synergistic opex savings to RM470m.
- Maintain BUY with a DCF-based target price of RM4.05. The stock offers attractive dividend yield of 5.2%.
Analysis
- 2Q26 core earnings in line. CelcomDigi reported a 3% qoq increase in 2Q26 underlying net profit of RM430m (-1% yoy). Underlying net profit excludes a RM32m settlement cost and stamp due, which we gather will be minimal in the coming quarter. 1H26 underlying net profit of RM848m (-2% yoy) accounted for 48% and 47% of house and street’s 2026 full-year forecasts respectively, within expectations.
BUY (Maintained)
Current price:
Target price:
Upside:
RM2.84
RM4.05
42.8%
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at the following link: this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
