Overview
Axiata Group Bhd is a large regional telecoms and digital infrastructure group with a market capitalisation of MYR 15.3B. For Australian investors scanning for defensive-style exposure in communication services, the stock stands out first for income: it carries a 6.21% dividend yield. The business mix is broad, spanning mobile services, infrastructure, digital and other adjacent telecom activities, but the latest numbers point to a company still working through modest growth and low margins.
Axiata Group operates across digital telco/mobile, infrastructure, digital and other segments, which gives it a wide footprint in telecommunications and related services. Its operations extend beyond basic mobile connectivity into interconnect services, broadband, pay TV transmission, network equipment, carrier and enterprise services, software development, digital business, financial services and other technology-enabled activities. That diversification can help broaden revenue streams, but it also means the investment case depends on how effectively the group monetises a complex portfolio across multiple markets and service lines. On the latest figures, revenue TTM is MYR 11.6B, while revenue growth is -3.20% and profit margin is 2.16%, suggesting scale is meaningful but profitability remains relatively restrained.
Key facts
- Ticker
- 6888
- Exchange
- KLSE
- ISIN
- MYL6888OO001
- Sector
- Communication Services
- Industry
- Telecom Services
- Country
- Malaysia
- Currency
- MYR
- Market cap
- 15.3B
- 52W low
- MYR 1.60
- 52W high
- MYR 2.73
Price and trend
- 52W range
- MYR 1.60 – MYR 2.73
- 50-day SMA
- MYR 1.84
- 200-day SMA
- MYR 2.15
Valuation
- P/E
- 166.00
- PEG
- 0.46
- EPS
- 0.01
- Dividend yield
- 6.48%
- Beta
- 0.38
On headline multiples, Axiata looks expensive on earnings with a P/E ratio of 167, though the PEG ratio of 0.46 suggests the market may be pricing in some growth recovery relative to the current earnings base. That contrast is important because the earnings number is very low at present, with EPS at 0.01. In other words, the valuation story is less about today’s earnings power and more about whether the group can improve its operating performance over time. For income-focused investors, the 6.21% dividend yield is the most immediate valuation anchor, supported by a dividend per share of MYR 0.105. The target price of MYR 2.56 also sits above the current trading context implied by the supplied technicals, but valuation should still be read alongside the company’s weak recent growth and slim profit margin rather than in isolation.
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Profitability and growth
- Revenue growth
- -3.20%
- Revenue TTM
- 11.6B
- Profit margin
- 2.16%
Analyst view
- Target price
- MYR 2.56
The broader picture is one of a defensive sector profile with some cyclicality in the operating numbers. Telecom services often attract investors looking for steadier demand than more economically sensitive industries, and Axiata’s low beta of 0.383 reinforces that generally calmer market behaviour. At the same time, the latest fundamentals do not point to a strong earnings momentum story: revenue growth is negative, margins are thin and the P/E multiple is stretched because earnings are small. Technically, the 50-day moving average of MYR 1.87 sits below the 200-day moving average of MYR 2.17, which can indicate the share price has been under pressure relative to its longer-term trend. The 52-week range of MYR 1.61 to MYR 2.73 provides useful context for that medium-term backdrop. For Australian investors, the appeal is likely to come from the combination of dividend income and a lower-volatility telecom profile, balanced against the need for clearer earnings improvement.
Risks
The main risk is that the company’s current earnings base is still weak, which helps explain the very high P/E ratio. Negative revenue growth of -3.20% also suggests the top line has not been expanding consistently, and that makes it harder to rely on margin recovery alone. Profit margin of 2.16% leaves limited room for operational setbacks, especially in a capital-intensive industry such as telecoms and infrastructure. The stock’s dividend yield is attractive, but investors still need to weigh whether cash generation and profit quality remain strong enough to support that payout profile over time. From a technical perspective, the share has also been trading below its 200-day moving average, which can point to a softer longer-term trend.
FAQ
What does Axiata Group Bhd do?
Axiata Group Bhd is a telecommunications investment holding company with activities across mobile services, infrastructure, digital services and other telecom-related businesses. Its operations also extend into broadband, network services, digital financial services and other technology-enabled areas.
Why might Australian investors look at Axiata Group Bhd?
The stock offers a 6.21% dividend yield and has a relatively low beta of 0.383, which may appeal to investors seeking a lower-volatility telecom exposure. It also operates in a large regional communications market with a diversified business mix.
What are the key valuation concerns?
The main concern is the very high P/E ratio of 167, which reflects a very small current earnings base. While the PEG ratio of 0.46 looks more modest, investors would still need confidence that earnings can improve materially to justify the valuation.
How does the recent trend look?
The 50-day moving average of MYR 1.87 is below the 200-day moving average of MYR 2.17, which suggests the medium-term trend has been softer than the longer-term average. The 52-week range is MYR 1.61 to MYR 2.73, giving a sense of where the share has traded over the past year.
*This content is aimed to provide general information only, and does not take your personal objectives, financial situation or needs into account.
