{
  "id": 2897407,
  "title": "5G clarity could lift telco valuations as DNB restructuring nears",
  "url": "https://urgent.news/2026/08/24/5g-clarity-could-lift-telco-valuations-as-dnb-restructuring-nears",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-08-24T00:00:52.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/08/1517456/5g-clarity-could-lift-telco-valuations-dnb-restructuring-nears"
  },
  "original_language": "en",
  "account": "Clearer guidance on Malaysia's long-term 5G framework could help alleviate pressure on telecom operators, according to analysts. Digital Nasional Bhd (DNB) is rolling out extra 100 MHz spectrum to enhance network quality and capacity as demand for 5G grows. At the same time, DNB shareholders are working on completing a loan restructuring and equity transfer by the end of Q3 2026. Hong Leong Investment Bank Bhd's Toh Woo Kim remains bullish on DNB, but easier-to-understand plans could improve investor confidence. He maintains a \"Buy\" rating on Maxis Bhd with a target price of RM4.45, citing resilient postpaid growth and cost discipline. Maxis expects DNB's restructuring and equity transfer to conclude by the end of Q3 2026. Assuming losses of RM700 million to RM800 million in 2026, Maxis' share of DNB's equity losses could be RM58 million to RM67 million in the fourth quarter, according to Toh. After the transfer, CelcomDigi and other shareholders are expected to offer more insight into DNB's recovery plans, especially regarding network optimization and tower sharing. Maxis' guidance for FY26 stays unchanged, with service revenue and Ebitda expected to grow at low single digits, while capital expenditure intensity will be 10% to 12%. Maxis' current valuation of 16.4 times FY27 P/E and an estimated 4.9% net yield offer compelling support. Kenanga Research's Kylie Chan Sze Zan noted Maxis' first-half FY26 performance matched expectations due to moderate service revenue growth, sustained postpaid expansion, and strong enterprise businesses. AI integration is expected to add to earnings growth through cost savings. Maxis' mobile segment continues to perform well, with refreshed plans driving subscriber growth while keeping ARPU steady. However, second-half growth may slow due to DNB's equity accounting starting in Q4, according to Chan. CelcomDigi analyst Ng Bei Shan estimated DNB's losses would impact CelcomDigi's FY26 earnings by less than 5%, with accounting expected to begin in Q4 FY26. The impact may be partially offset by operational excellence savings, raising CelcomDigi's 2026 target to RM470 million from RM450 million. CelcomDigi has already saved over RM140 million year-to-date and is expected to maintain stable blended ARPU through improved revenue per account.",
  "summary": "KUALA LUMPUR: Greater clarity on the long-term 5G framework in Malaysia could ease the pressure weighing on the telecommunications (telco) sector and help narrow the valuation discount faced by local operators, according to industry analysts.",
  "key_points": [
    "Clearer 5G guidance may boost telco valuations",
    "DNB restructuring and equity transfer near completion by Q3 2026",
    "Maxis expects DNB equity losses to be RM58 million to RM67 million in Q4"
  ],
  "editors_take": "Clearer 5G guidance and DNB's restructuring could boost investor confidence and valuations of telecom operators like Maxis Bhd and CelcomDigi, who are exposed to DNB's equity losses and future recovery plans.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}