CelcomDigi Bhd Stock (ISIN: MYL6947OO005) Gains Momentum on StreamMORE Launch Amid Steady Trading

CelcomDigi Bhd stock (ISIN: MYL6947OO005) sees renewed investor interest following the integration of sooka streaming into its StreamMORE platform, with shares trading steadily around RM3.14 on Bursa Malaysia. This move diversifies revenue in Malaysia's competitive telecom market, offering appeal to European investors seeking exposure to high-growth ASEAN mobile and content ecosystems.

CelcomDigi Bhd stock (ISIN: MYL6947OO005) is attracting fresh attention as the company integrates popular sooka streaming services into its StreamMORE platform, a strategic push into premium content amid stable trading volumes on Bursa Malaysia.

As of: 18.03.2026

By Elena Voss, Southeast Asia Telecom Analyst - Tracking how Malaysian telco mergers unlock value for global investors through 5G and digital ecosystems.

Current Market Snapshot: Steady Volumes Around RM3.14

CelcomDigi Bhd shares, listed under code 6947 on Bursa Malaysia as ordinary shares of the holding company formed from the Celcom Axiata and Digi merger, have shown consistent trading activity. Recent sessions recorded notable volumes such as 1,100 shares at RM3.14 totaling RM3,454 and 3,300 shares at the same price amounting to RM10,362, signaling steady institutional interest without sharp volatility.

This stability comes as the StreamMORE platform launches sooka integration, available through May 2026 promotions, positioning the stock as a defensive play in ASEAN telecoms. For investors, the lack of immediate price swings suggests the market is digesting the news alongside broader sector dynamics, with no major catalysts disrupting the RM3.14 level yet.

The timing aligns with promotional windows, potentially sparking trading interest as content bundles enhance subscriber stickiness. Bursa Malaysia's liquidity supports this, contrasting with more volatile regional peers facing data pricing pressures.

Business Model: Telecom Powerhouse with Content Diversification

CelcomDigi Bhd operates as Malaysia's leading telecom holding company post-2022 merger, commanding over 20 million subscribers and approximately 45% mobile market share. Its revenue mix includes mobile services at 70%, home broadband at 15%, and enterprise solutions at 15%, with average revenue per user (ARPU) around RM40-45 monthly.

The StreamMORE ecosystem now bundles sooka with Netflix and Disney+, contributing 5-10% of add-on revenue at high 40-50% gross margins, far exceeding core mobile's 30%. This hybrid model fosters ecosystem lock-in, akin to Singtel or AIS, differentiating CelcomDigi through premium content amid price wars.

Postpaid upgrades and 5G rollout drive growth, with operating leverage emerging as capex peaks. Investors value this shift toward recurring, high-margin digital services, enhancing resilience in a saturated market.

Financial Health: Solid Balance Sheet Supports Growth

Merger synergies have strengthened CelcomDigi's balance sheet, reducing net debt to EBITDA from 3.5x to around 2.5x. This enables sustained 5G capex targeting 80% population coverage by 2027, while generating free cash flow for dividends at 60% payout of FCF, yielding 4-5%.

Capex intensity at 20% of revenue is transitioning to maintenance levels, potentially unlocking 10-15% FCF margins. Selective buybacks could activate if shares fall below RM3.50-4.00 intrinsic value estimates, balancing growth and returns.

For income-oriented investors, this profile mitigates risks in rising rate environments, with low leverage cushioning refinancing needs. Trade-offs include ongoing capex demands, but synergies of RM5bn over five years bolster margins to 45% EBITDA.

European and DACH Investor Appeal: Diversification into ASEAN Growth

While CelcomDigi lacks a direct Xetra or Deutsche Boerse listing, international brokers provide access, appealing to DACH portfolios heavy in utilities and industrials seeking underrepresented ASEAN telecom exposure. Malaysia's 5-6% GDP growth surpasses Europe's 1-2%, with stable ringgit dynamics aiding euro-based investors.

DACH investors, accustomed to 2-3% telecom yields from European giants like Deutsche Telekom, find CelcomDigi's 4-5% dividend attractive alongside 8-10% EBITDA margins competitive against Vodafone when adjusted for emerging market premiums. The 5G and content push mirrors European digital telco strategies, offering growth without home bias risks.

Swiss franc stability pairs well with Malaysia's pegged influences, reducing forex volatility for conservative allocations. This positions the stock as a yield-plus-growth play in diversified EM strategies.

Competitive Landscape: Leading Position with Synergy Edge

CelcomDigi holds a strong edge over Maxis (30% share), U Mobile (15%), and smaller rivals, leveraging RM5bn in merger cost savings to expand EBITDA margins. Sector tailwinds include 30% YoY data consumption growth and 5G monetization via IoT and fixed wireless.

Postpaid migration to 60% of subscribers counters prepaid erosion from virtual operators. Enterprise solutions provide diversification, with demand rising from digital economy shifts. This leadership cements CelcomDigi's defensive moat in a consolidating market.

Operating Environment: 5G Rollout and Data Demand Drivers

Malaysia's telecom sector benefits from robust data usage, up 30% year-over-year, fueling ARPU growth of 3-5% via 5G upgrades. Fiberhood expansions in home broadband target underserved areas, while enterprise IoT taps industrial digitization.

Regulatory environment via MCMC supports infrastructure but scrutinizes dominance, potentially limiting pricing. Still, population coverage goals to 80% by 2027 align capex with long-term returns, enhancing network effects.

End-market resilience amid economic cycles underscores telco defensiveness, with content bundles like StreamMORE boosting retention and ARPU without heavy infrastructure spend.

Cash Flow, Dividends, and Capital Allocation

Free cash flow generation supports progressive dividends, with recent payouts tied to 60% of FCF, appealing to yield hunters. Balance sheet strength at 2.5x net debt/EBITDA allows flexibility for tower monetization, potentially unlocking RM2-3bn.

Capital priorities balance 5G investments with returns, including buybacks below fair value. This disciplined approach minimizes dilution risks, fostering shareholder value in a capex-heavy sector.

Risks, Catalysts, and Valuation Outlook

Near-term catalysts include quarterly results capturing synergies, 5G ARPU uplift, and tower deals. Risks feature MCMC regulatory probes on dominance, forex exposure, and spectrum auction costs.

At 7-8x EV/EBITDA, the stock trades at a discount to peers' 9-10x, suggesting 15-20% upside to RM3.80 targets. For DACH investors, this valuation offers entry amid StreamMORE momentum, balanced against EM volatilities.

Chart setup shows support at RM3.00, with resistance near RM3.50; sentiment leans positive on content diversification. Overall, CelcomDigi presents a compelling case for portfolios blending yield, growth, and regional diversification.

Disclaimer: Not investment advice. Stocks are volatile financial instruments.