Maxis: Where Scale Becomes Cash

Value Investing Case Study 109-1: A fundamental analysis of Maxis Bhd to assess whether this is a quality-at-a-reasonable-price investment.  

What if Malaysia’s most interesting telco story is not about chasing more subscribers, but about quietly turning scale into cash?

Over the past decade, Maxis Berhad has rewritten its playbook. Once a pure-mobile champion, it is now a converged powerhouse where Mobile, Home Fibre and Enterprise work in sync. 

The numbers tell the story - revenue growth that doubled post-2020, a flatter but more defendable gross margin, and fixed cost margin that have been sliced from 50% to 31%. In short, Maxis has learned to do more with less.

The hidden strength? Operating discipline. While rivals burned cash on promotions and subsidies, Maxis built a low-cost digital backbone that now let every extra ringgit of revenue flow more freely to profit.

And yet, this is not a growth fairy tale. The telco market is mature, 5G is commoditising, and competition is never far away. But where others chase volume, Maxis is playing the long game: monetising convergence and keeping its return on invested capital (ROIC) above its cost of capital (WACC). 

If you are wondering whether this efficiency story translates into a buy - or if the market has already priced in the pivot – you will want to read the full analysis. There is more beneath the surface: hidden drivers, valuation math, and what the market might be missing.

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If the above article was useful, you can find more insights on how to make money in my e-book. The e-book is now available from Amazon, Kobo and Google Play.

PS: If you are in Malaysia or Singapore, the e-book can only be download from Kobo and Google Play. 

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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