KUALA LUMPUR: Maxis Bhd has guided a capital expenditure intensity of 10-12 per cent for financial year 2026, according to Public Investment Bank Bhd (PublicInvest).

PublicInvest said Maxis plans to focus on fibre rollout to enhance connectivity for its customers and expand its data centre business.

"However, issues related to Digital Nasional Bhd remain unresolved, and any future equity accounting from the entity's financial losses could affect Maxis' earnings if the put option is exercised," the firm added.

Given the muted growth outlook and near-term prospects, PublicInvest maintained its "Neutral" recommendation on the stock, with an unchanged target price of RM4.00, citing limited upside.

The firm noted that Maxis' financial year 2026 dividend yield is expected to remain attractive at around five per cent.

Meanwhile, PublicInvest said Maxis' financial year 2025 net profit of RM1.561 billion, up 11.8 per cent year-on-year, met full-year estimates, reaching 100 per cent of PublicInvest's forecast and 101 per cent of consensus.

The year-on-year improvement was attributed to higher revenue and improved operational efficiency.

Looking ahead, the firm said Maxis aims to strengthen its customer base, further expand its enterprise business, and grow its network infrastructure and wholesale operations.

It added that the group has guided for low single-digit growth in service revenue and earnings before interest, taxes, depreciation, and amortisation in financial year 2026.

"While the company continues to focus on operating excellence, it remains exposed to uncertainties surrounding the development of 5G in Malaysia," it said.