PETALING JAYA: The purchase of MyKRIS Asia Sdn Bhd by Maxis Bhd is to strengthen its enterprise business and broaden its spectrum of enterprise product offerings, according to analysts.

       It also fits into Maxis’ overall strategy to evolve into a converged solutions provider in view of heightened mobile competition, high connectivity and handset penetration.

       The long-term growth driver identified is the enterprise business solution segment and that is why Maxis has acquired several companies in the past.

       Analysts said this would help Maxis realise its ambition to have a projected service revenue of RM10bil by 2023 with growth driven by enterprises.

       However, Maybank IB Research said it has not yet observed a sharp revenue uplift from enterprise offerings.

       The acquisition of MyKRIS is Maxis’ largest to date and while analysts viewed it positively, the potential earnings accretion expected could be marginal.

       TA Research said MyKRIS Asia’s potential accretion to Maxis financial year (FY) 2022/2023 earnings would be marginal at 0.6% to 0.7%.

       Maxis has announced its proposal to buy MyKRIS Asia for RM157.5mil (RM115mil base plus RM42.5mil add-ons over three years upon fulfillment of revenue targets).

       UOB Kay Hian said the total purchase consideration of RM157.5mil in MyKRIS implies a 19 times 2021 price earnings ratio (PE) – below Maxis current 25 times 2021 PE.

       This appeared earnings accretive for Maxis and would provide more monetisation opportunities in the long run by leveraging on MyKRIS’s existing expertise and the growing demand for enterprise solutions, it said.