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Telekom Malaysia: When No Growth Still Creates Value
For more than a decade, Telekom Malaysia has looked like a company going nowhere. Revenue barely moved. Growth investors lost interest. The market quietly wrote it off as a mature, ex-growth telco.
But that surface-level narrative misses what actually happened underneath.
While the topline stood still, TM was dismantling and rebuilding itself. It pivoted from a convergence-driven national telco into a platform-led digital infrastructure and technology company under its PWR 2030 vision. In the process, it traded growth for something far more durable: resilience, operating leverage, and capital efficiency.
The result is a business that looks fundamentally different from what it was in 2015. Fixed costs have structurally declined. Contribution margins have widened. Operating and net profits have compounded despite flat revenue.
Returns on capital now exceed the cost of capital - clear evidence of shareholder value creation that the market often overlooks.
So is TM a stealth turnaround? A steady value compounder? Or simply a well-run utility priced for perfection?
To separate perception from fundamentals you have to dig deeper - from margins and cash flow to peer positioning and valuation. If you think revenue growth is the only path to value, an in-depth analysis may challenge that belief.
