Mobile Market Set For Modest Growth In 2026 Amid DNB Concerns -- HLIB

KUALA LUMPUR, March 10 (Bernama) -- The mobile market is on track for low single-digit revenue growth in 2026, consistent with guidance from both CelcomDigi Bhd (CDB) and Maxis Bhd, as Digital Nasional Bhd (DNB) is likely to remain as the focal point of investors’ concern in the near term.

In a research note, Hong Leong Investment Bank (HLIB) said that with the share transfer completed in March 2026, both CDB and Maxis will begin equity accounting their respective 33 per cent stakes in DNB, bringing DNB's potential losses onto their books. 

CDB and Maxis have each paid RM327.87 million to acquire their respective shares of ordinary shares owned by Minister of Finance Incorporated (MoF Inc) in DNB, as well as to settle the outstanding MoF Inc loan in the company.

"While we expect some near-term anxiety around this, we are confident that key stakeholders (particularly CDB and Maxis) will articulate measures (cost optimisation, deeper network sharing and integration, spectrum refarming, among others) to underpin a sustainable long-term operating model for DNB," it said.

However, HLIB said DNB remains a key debate. As execution risk is increasingly priced into the market for both Maxis and CDB, a sustained re-rating will likely require greater clarity on DNB’s long-term direction. 

Meanwhile, the investment bank said it continues to see an attractive risk-reward profile for the fixed-line operators, given their key role in broadband and 5G infrastructure and imminent data centre deployments in Malaysia, as the build-out phase progresses. 

It said both Telekom Malaysia Bhd and Time dotCom Bhd are looking to optimise their under-leveraged balance sheets in 2026, which include upward revisions to dividend policies and special dividend payouts.

Hence, HLIB maintained its 'overweight' call on the telecommunication sector.

-- BERNAMA