CelcomDigi’s Next Chapter: Compounder or Value Trap?
Value Investing Case Study 103-1: A fundamental analysis of CelcomDigi to assess whether it can turn scale into sustainable returns.
Malaysia’s largest mobile operator, CelcomDigi, was born from the high-profile merger of Celcom Axiata and Digi.Com. On paper, it is a juggernaut: 20 million customers, the widest network reach, and a converged platform spanning mobile, broadband, fibre, and digital enterprise services.
Despite the fanfare of the merger, revenue growth has been flat. In fact, 2024 revenue slipped marginally, and the first half of 2025 delivered only low single-digit growth. For a company with unmatched reach, that is hardly inspiring. The Malaysian telco market itself is mature, so growth will hinge on whether CelcomDigi can unlock pricing power and drive efficiency.
Operationally, the company looks like a value creator. Its return on invested capital now exceeds its cost of capital, which means its operations add economic value. But for shareholders, the ROE merely matches the cost of equity. In plain English: the business is working hard, but investors are only just breaking even relative to their risk.
The Group is pinning its future on expanding into enterprise ICT, IoT, and digital solutions. This market is indeed growing fast - but for now, it is still a tiny slice of revenue.
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Disclaimer & DisclosureI am not an investment adviser, security analyst, or stockbroker. The contents are meant for educational purposes and should not be taken as any recommendation to purchase or dispose of shares in the featured companies. Investments or strategies mentioned on this website may not be suitable for you and you should have your own independent decision regarding them.
The opinions expressed here are based on information I consider reliable but I do not warrant its completeness or accuracy and should not be relied on as such.
I may have equity interests in some of the companies featured.
This blog is reader-supported. When you buy through links in the post, the blog will earn a small commission. The payment comes from the retailer and not from you.
Disclaimer & Disclosure
I am not an investment adviser, security analyst, or stockbroker. The contents are meant for educational purposes and should not be taken as any recommendation to purchase or dispose of shares in the featured companies. Investments or strategies mentioned on this website may not be suitable for you and you should have your own independent decision regarding them.
The opinions expressed here are based on information I consider reliable but I do not warrant its completeness or accuracy and should not be relied on as such.
I may have equity interests in some of the companies featured.
This blog is reader-supported. When you buy through links in the post, the blog will earn a small commission. The payment comes from the retailer and not from you.
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