KUALA LUMPUR: Axiata Group Bhd has set out a three year roadmap to lift shareholder value through portfolio optimisation, execution of integration plans and 5G rollout across its core and frontier markets, unveiled at its 2026 Analyst Day themed "Axiata28 Advancing Asia".
The event drew about 50 participants from sell side and buy side institutions, Hong Leong Investment Bank Bhd (HLIB) said.
Investor focus remains on CelcomDigi Bhd amid lingering uncertainty over Digital Nasional Bhd's 5G wholesale network. Polls during the analyst day showed 53 per cent of respondents see this as a key risk for Axiata in 2026.
HLIB said CelcomDigi, a significant contributor to Axiata's sum of parts valuation, has seen its share price pressured by the unresolved issue. Both Axiata and CelcomDigi remain committed to resolving matters, including the put option exercised by the Finance Ministry in December.
Operationally, CelcomDigi is positioning 2026 as a transition year to steady state execution, with information technology integration 85 per cent complete and targeted for completion by end 2026 or early 2027.
In Indonesia, the XL Axiata–Smart merger is showing early signs of recovery, with network integration progress at 73 per cent as of January 2026, ahead of the original end-2026 target and on track for completion in the first half of the year.
HLIB said XLSmart is guiding for revenue growth in line with industry trends, while earnings before interest, taxes, depreciation and amortisation (Ebitda) is expected to grow at roughly twice the pace of topline expansion as cost synergies are realised.
Management is also targeting digital channels to contribute more than 50 per cent of sales and aims to strengthen net promoter score leadership across key segments.
Across frontier markets including Sri Lanka, Bangladesh and Cambodia, operating conditions have improved following earlier political disruptions.
With 5G only recently launched, Axiata's operating companies are prioritising monetisation initiatives such as fixed wireless access, given low fixed broadband penetration. 5G is also positioned as a more cost efficient network to support rising data demand.
HLIB said completion of portfolio optimisation remains a key rerating catalyst, with 77 per cent of analyst day respondents citing the monetisation of Edotco and Link Net as the main driver.
Concerns over potential delays or lower valuations, particularly for Edotco, have weighed on Axiata's share price.
Group management reaffirmed its target to complete Edotco monetisation within 2026, while the Link Net divestment may take longer amid broader challenges in Indonesia.
Looking ahead, HLIB said Axiata is targeting more than 10 per cent year on year dividend per share growth, a net debt to Ebitda ratio below two times excluding asset monetisation, and high single digit annualised total shareholder returns through financial year 2028.
HLIB maintained a "Buy" call on Axiata with an unchanged sum of parts target price of RM2.95, citing Edotco monetisation as a key near term catalyst while earnings from core units remain muted amid ongoing integration and portfolio optimisation.
