KUALA LUMPUR, Aug 17 (Bernama) -- CelcomDigi Bhd’s share price rose 4.57 per cent in early trading on Monday, despite recording a lower net profit for the second quarter of 2026 (2Q 2026).
At 10.57 am, its shares gained 13 sen to RM2.97 with 4.38 million shares traded.
The company posted a lower net profit of RM398 million in 2Q 2026, down from RM439 million a year ago.
Revenue for the quarter under review rose to RM3.18 billion against RM3.17 billion previously, driven by targeted marketing initiatives across the postpaid and home fibre segments.
In a note, MBSB Investment Bank Bhd (MBSB IB) said it expects stronger performance in the second half of 2026 (2H 2026), despite observing some earnings pressure in 2Q FY2026.
“This is due to our expectation that the cost savings initiative will pick up pace in 2H 2026, as the group guided higher total savings for 2026.
“Nonetheless, we only input a 5 per cent increase for 2026 given that this is the first year of the cost structure transformation journey. We anticipate earnings to increase at a faster pace in 2027 based on this premise,” it said.
CelcomDigi declared a second interim dividend of 3.4 sen per share, but MBSB IB expects a higher dividend in 2H 2026, in line with its expectations of a stronger 2H 2026 performance.
MBSB IB has maintained its “Buy” call with a target price of RM3.54.
Meanwhile, Hong Leong Investment Bank Bhd said it sees scope for margins to improve in 2H FY2026, supported by stronger cost discipline and continued operational efficiency gains.
“We believe Digital Nasional Bhd remains a key overhang, but expect greater clarity on its turnaround priorities, particularly network optimisation and tower sharing, following the equity transfer by end-3Q 2026,” it said.
It is maintaining its “Buy” call on the company, with a target price of RM3.70.
-- BERNAMA