Telekom Malaysia up after announcing 3Q profit

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KUALA LUMPUR (Nov 26): Telekom Malaysia Bhd's (TM) share price pared gains today after rising as much as 27 sen or 7.26% to RM3.99 in afternoon trades following the company's announcement of a net profit of RM261.31 million for the third quarter ended Sept 30, 2019 (3QFY19) versus a RM175.59 million net loss a year earlier.

At 3:35pm today, the counter pared gains at RM3.90 among Bursa Malaysia's top gainers. The stock saw 12.77 million shares traded.

For 9MFY19, TM said in a Bursa filing today that cumulative net profit rose to RM683.77 million from RM83.5 million a year earlier.

AmInvestment Bank Bhd analyst Alex Goh wrote in a note today that pending an analyst briefing by TM later today, the research house is maintaining its FY19 to FY21 earnings forecasts for TM even though the group's 9MFY19 normalised net profit of RM811 million appears to be above expectations, accounting for 83% and 89% of its and consensus' FY19 earnings forecast respectively

"We note that our FY19 (TM) net profit (forecast) is currently 7% above consensus," he said, adding that AmInvestment maintained its hold call on TM shares with an unchanged fair value of RM3.50.