U Mobile has gained market share and its positive operating profit suggests an initial public offering could be around the corner, CLSA analyst Paul Yap said in a note Tuesday.
* Company had 6.12m subscribers or a 14% market share as of 2017 end
* Data from the regulator shows incumbents lost market share to the company and mobile virtual network service providers in 2017 and 1Q18
* U Mobile’s IPO may happen after Malaysia’s 14th general election, The Edge said in a report in Dec 2017, citing an interview with CEO Wong Heang Tuck
* Maintains neutral on the sector, citing intense competition
** Prefers Axiata and Telekom Malaysia as Buys on “undemanding valuations”
** Remains Sell on DiGi and Maxis