PETALING JAYA: Maxis Bhd seems to be back on a growth trajectory for service revenues and net profit, while capital expenditure (capex) is expected at low levels pending clarity on its 5G rollout plans.

CGS International (CGSI) Research believes Maxis has several options for providing 5G services but a decision may take time due to its complexity.

Following Maxis’ fourth quarter of 2024 (4Q24) results, CGSI Research raised its financial year 2025 (FY25) to FY26 core net profit estimates by 6.3% and 5.4%, alongside an upward revision in service revenue projections.

For FY24 to FY27, CGSI Research expects service revenue compounded annual growth rate (CAGR) of 2%, which will in turn support a 3.4% core net profit CAGR over the same period.

The research house deferred its capex estimates, expecting muted spending until Maxis establishes a clear 5G rollout strategy, in line with its “less than RM1bil” FY25 capex guidance.

It reiterated its “add” call on Maxis with a higher price target of RM3.93 a share on the back of tweaks to its forecasts. At last look, Maxis’ share price was at RM3.19. The stock has declined 55.8% (versus the FBM KLCI’s down 15.9%) over the last 10 years, the research house said.