‘Maxis-PetDag partnership may not enhance near term earnings’

KUALA LUMPUR: Maxis Bhd’s (Maxis) partnership with Petronas Dagangan Bhd (Petronas Dagangan) is not likely to a substantive enhancement to the group’s earnings in the near term.

Maxis and Petronas Dagangan on Wednesday entered into a strategic partnership to jointly offer converged solutions focusing on safety, security and sustainability for businesses.

AmInvestment Bank Bhd (AmInvestment Bank) saw that the partnership would focus on leveraging big data and advanced analytics to co-create hyper personalisation for an enhanced and differentiated retail experience for over 1,000 Petronas stations through big data and advanced analytics with Maxis as the technology enabler.

“Petronas Dagangan and Maxis will also go to market with converged end-to-end business solutions that will offer greater convenience and cost optimisation, while ensuring the safety and security of their assets, fleet and drivers.

“By doing so, both Petronas Dagangan’s and Maxis Business customers can benefit from a wider suite of solutions ranging from asset management to logistic services,” the joint statement revealed.

According to AmInvestment Bank, this is part of Maxis’ enterprise business, which contributed seven per cent of the group’s first nine months of financial year 2020 (9MFY20) service revenue.

“While this partnership is positive over the longer term for Maxis, we do not expect a substantive enhancement to the group’s earnings in the near term,” the research firm said.

“Hence, we maintain our FY20F-FY22 earnings for now.”

AmInvestment Bank’s FY20FFY22F earnings for Maxis thus remained at RM1.47 billion, RM1.56 billion and RM1.62 billion, respectively.

The research firm recapped that besides this new development, the group has also partnered with Amazon Web Services’ Solution Provider Program and supported AmBank’s digital solutions for small-medium enterprises while helping the Penang state government to launch IoT pilot projects.