KUALA LUMPUR (June 26): Hong Leong Investment Bank Bhd cut its Telekom Malaysia Bhd (TM) earnings forecast and reduced its TM share target price on expectation Malaysia's mandatory standard on access pricing will hit TM the hardest in the telecommunication industry.

In a note today, Hong Leong analyst Tan J Young wrote Hong Leong cut its TM earnings forecast by 32% and 33% for financial years ending Dec 31, 2019 (FY19) and 2020 (FY20) respectively, to reflect lower average revenue per user for retail subscribers.

"As such, TM’s TP has been reduced by 30%, from RM4.29 to RM3.02. Maintain HOLD call," Tan said.

At Bursa Malaysia, TM shares settled at RM3.10 at 12:30pm. The stock saw some six million shares traded.