CelcomDigi Berhad (CDB) demonstrated robust growth potential in its latest Environmental, Social, and Governance (ESG) initiatives, according to reports by MIDF Investment Bank (MIDF) and Kenanga Investment Bank (Kenanga).
The telecommunications giant's inaugural ESG Day unveiled a comprehensive five-year strategy, reinforcing its commitment to digital inclusivity, sustainable practices across its value chain, governance excellence, and environmental stewardship. This strategic alignment with global ESG standards positions CelcomDigi as a pivotal player in fostering trust within Malaysia's digital ecosystem.
MIDF maintains its BUY recommendation on the MNO, reaffirming a target price of RM4.95. The bank underscores the integration of ESG principles into its core operations, enhancing market confidence amid its merger synergies and strategic growth initiatives.
Meanwhile, Kenanga reiterates an OUTPERFORM rating with a target price of RM5.97, citing CDB's diligent execution of its ESG roadmap and significant strides towards sustainable digital transformation.
Based on the unveiling, CDB's ESG strategy prioritises inclusive digital access and robust network reliability benchmarks, alongside sustainable procurement practices aimed at achieving a 90% annual non-conformity close-out rate by 2025. The company's governance enhancements include full compliance with regulatory modules and disclosures, bolstering its reputation as an employer of choice with a commitment to gender equality. Environmentally, CDB targets decarbonisation through hybrid-solar-powered solutions and cloud migration to mitigate its carbon footprint.
Both MIDF and Kenanga acknowledge CDB's proactive stance in addressing societal challenges, highlighted by its National Scam Awareness Survey 2024. The survey underscored prevalent scam tactics, reinforcing CDB's role in enhancing cybersecurity measures and public awareness through technology-driven safeguards. Despite challenges, CDB's resilient earnings outlook and strategic investments in 5G technology position it favourably in Malaysia's telecommunications landscape.