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Singtel Bullish???
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MrBear12
Supreme |
15-Aug-2025 09:11
Yells: "Cast all our anxieties on Jesus for He cares for us" |
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Can' t read it because it appears only for a few seconds. So copied it... ...
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| Year to 31 Mar (S\$ million) | 2024 | 2025 | 2026F | 2027F | 2028F |
| Net Turnover | 14,128 | 14,146 | 14,435 | 14,883 | 15,230 |
| EBITDA | 3,597 | 3,792 | 4,024 | 4,265 | 4,409 |
| Operating Profit | 1,153 | 1,381 | 1,504 | 1,744 | 1,878 |
| Net Profit (Adj.) | 2,261 | 2,470 | 2,716 | 2,973 | 3,160 |
| EPS (S\$ cent) | 13.7 | 14.9 | 16.4 | 18.0 | 19.1 |
| Dividend Yield (%) | 3.7 | 4.2 | 4.5 | 4.9 | 5.1 |
| Net Margin (%) | 5.6 | 28.4 | 18.8 | 20.0 | 20.7 |
| ROE (%) | 3.1 | 15.8 | 10.5 | 11.7 | 12.5 |
Optus: Cash Flow and Profitability in Focus
Optus, Singtel&rsquo s Australian subsidiary, is leveraging market repair to drive higher ARPU (Average Revenue Per User) and operational efficiency. Key earnings drivers include:· ARPU Expansion: Room for revenue uplift as market pricing normalizes.
· Cost Optimization: Optus is expected to contribute significantly to the group&rsquo s S\$200-250 million in annual cost savings.
· Efficient CAPEX: Network-sharing arrangements with TPG will reduce CAPEX-to-revenue intensity below 20% as infrastructure and spectrum are shared in regional Australia, while both brands remain competitive in urban markets.
Nxera: The Group&rsquo s Next Growth Engine
Nxera, Singtel&rsquo s infrastructure and data centre unit, is positioned as a major growth catalyst. Highlights include:· Capital Raising: Nxera plans to expand its regional data centre footprint via strategic partnerships, mirroring its S\$1.1 billion, 20% stake sale to KKR.
· Data Centre Expansion: Recent launches include a 25MW facility in Thailand (with AIS and GULF Energy). Singapore&rsquo s 60MW TUAS and a 64MW Johor Bahru data centre (with Telekom Malaysia) are slated for completion by 2026. Nxera&rsquo s capacity is on track to double to 400MW.
Valuation and Investment Recommendation
· Singtel is rated a BUY, with a sum-of-the-parts (SOTP) target price of S\$4.58.· Key catalysts for re-rating include successful monetisation of 5G and enterprise businesses, data centre/NCS monetisation, and further market repair in Singapore.
· Improving business fundamentals, a solid 4.5% dividend yield for FY26, and a robust asset recycling pipeline make Singtel an attractive defensive play amid market volatility.
SOTP-Based Valuation Breakdown
| Asset | Valuation (S\$ million) | % of SOTP |
| Singapore ST | 10,346 | 10% |
| Optus | 15,512 | 15% |
| NCS, Digital Infraco | 7,710 | 8% |
| Total Enterprise Value | 33,568 | 33% |
| Net Debt | 9,464 | 9% |
| Total Equity Value of Unlisted Opcos | 24,104 | 24% |
| GULF | 2,542 | 3% |
| Airtel | 48,534 | 48% |
| AIS | 8,910 | 9% |
| Globe | 2,802 | 3% |
| Telkomsel | 14,147 | 14% |
| Total Equity Value of Associates | 76,935 | 76% |
| Total Equity Value of Singtel (S\$ million) | 101,039 | |
| Equity Value Per Share (S\$) | 6.10 | |
| Fair Value (25% holding company discount) | 4.58 |
Profit & Loss, Balance Sheet, and Cash Flow Forecasts
| Year to 31 Mar (S\$ million) | 2025 | 2026F | 2027F | 2028F |
| Net Turnover | 14,146.1 | 14,435.2 | 14,883.5 | 15,229.8 |
| EBITDA | 3,791.9 | 4,023.8 | 4,264.8 | 4,409.4 |
| Operating Profit (EBIT) | 1,381.3 | 1,504.3 | 1,743.7 | 1,878.0 |
| Net Profit (Adj.) | 2,469.8 | 2,715.5 | 2,972.7 | 3,159.5 |
| Cash Flow from Operations | 4,609.2 | 5,504.5 | 5,789.5 | 6,033.7 |
| Capex (Maintenance) | (2,223.7) | (2,526.2) | (2,232.5) | (2,284.5) |
| Dividend Payments | (2,774.2) | (3,063.3) | (3,311.7) | (3,510.4) |
| Ending Cash & Equivalents | 2,773.2 | 2,663.5 | 2,811.5 | 2,950.2 |
Key Metrics and Profitability Ratios
· EBITDA Margin (2026F): 27.9%· Pre-Tax Margin (2026F): 26.1%
· Net Margin (2026F): 18.8%
· ROA (2026F): 5.8%
· ROE (2026F): 10.6%
· Debt to Total Capital (2026F): 32.2%
· Net Debt/Equity (2026F): 37.2%
· Interest Cover (2026F): 11.6x
Conclusion: Singtel&mdash A Defensive, High-Quality Play for Investors
Singtel is well-positioned to deliver consistent earnings growth, attractive dividends, and potential upside through strategic asset monetisation. With clear execution on its ST28 plan, a strong balance sheet, and multiple catalysts in play, Singtel stands out as a top pick for investors seeking stability and growth in the telecommunications sector. The BUY rating and S\$4.58 target price underscore its compelling risk-reward profile in today&rsquo s market.BEAR target price is higher at 800 by 2028
Delvyss ( Date: 15-Aug-2025 09:02) Posted:
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Elite
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Singapore Telecommunications (Singtel) Stock Analysis 2025: Strong Earnings, Dividends & Growth Prospects
https://www.minichart.com.sg/2025/07/11/singapore-telecommunications-singtel-stock-analysis-2025-strong-earnings-dividends-growth-prospects/
MrBear12 ( Date: 15-Aug-2025 09:00) Posted:
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Supreme
Yells: "Cast all our anxieties on Jesus for He cares for us"
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It is worth much more than 200%
Simply because it has strategic assets that cannot be monetised or measured by mere money
An example is: Singapore' s security depends a lot on Singtel.
Can' t tell you more.
Trade with security
Delvyss ( Date: 15-Aug-2025 08:46) Posted:
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Elite
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Singtel: Can Singtel' s core value rise by > 200%?
https://www.dbs.com.sg/treasures/aics/templatedata/article/recentdevelopment/data/en/DBSV/062025/ST_SP_06192025.xml
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Singtel Q1 profit soars 317.4% to S$2.9 billion on exceptional gains of S$2.2 billion
Its underlying net profit rises 13.9% on the year to S$686 million, from S$603 million
[SINGAPORE] Singtel on Wednesday (Aug 13) posted a higher net profit for its first quarter ended Jun 30, 2025, at S$2.9 billion, up 317.4 per cent from S$690 million in the year-ago period.
The bottom-line growth came as the telco recorded exceptional gains amounting to around S$2.2 billion, primarily from the sale of its partial stake in Airtel and the Intouch-Gulf Energy merger.
Meanwhile, Singtel&rsquo s underlying net profit rose 13.9 per cent on the year to S$686 million, from S$603 million.
Analysts said that the results were largely in line with market expectations.
&ldquo Singtel&rsquo s Q1 results indicate it&rsquo s likely to meet its reiterated full-year earnings before interest and taxes (Ebit) growth target largely due to reduced costs,&rdquo noted Chris Muckensturm in a Bloomberg Intelligence report.
The exceptional gains included a net gain of around S$1.5 billion from Singtel&rsquo s divestment of its 1.2 per cent stake in its India associate Airtel in May. It also included a net gain of S$746 million from the merger of Singtel&rsquo s former associate Intouch with Thailand-incorporated holding company Gulf Energy Development in April.
Other factors that contributed to Q1 improvements included the higher Ebit of its Australian unit Optus and its technology services arm NCS. Optus recorded a 36 per cent year-on-year rise in Ebit to A$133 million (S$111.4 million) driven by revenue growth and disciplined cost management, while NCS posted a 22 per cent year-on-year increase in Ebit to S$79 million from higher delivery margins.
DBS analyst Sachin Mittal said that the Optus-led growth is due to the 4 per cent year-on-year rise in mobile service revenue, which can be attributed to continuous tariff hikes for postpaid plans.
Muckensturm added that Optus&rsquo profit momentum may accelerate as recent tariff hikes and network-sharing could revive top-line growth from a &ldquo sequentially flat&rdquo Q1.
Higher profit contributions from Singtel&rsquo s regional associates AIS and Airtel also led to the improved Q1 results, as the telco&rsquo s share of regional associates&rsquo post-tax profits climbed 15.4 per cent on the year to S$468 million, from S$405 million. These were partly offset by lower net profit from its Indonesian associate Telkomsel, amid weaker mobile performance, as well as its Philippine associate Globe, amid weak consumer spending.
Airtel&rsquo s profit after tax rose 121 per cent. Singtel&rsquo s effective stake in Airtel is around 28.1 per cent &ndash down from 29.4 per cent &ndash after its partial stake sale.
CGS International (CGSI) analyst Prem Jearajasingam cited a recent news report by Reuters, which noted that the Mittal family behind Bharti Airtel is looking to place out approximately 0.8 per cent &ndash worth S$1.2 billion at current prices &ndash of the company&rsquo s shares.
The report stated that if the reported sale takes place, the Mittal family&rsquo s stake would decline to approximately 22 per cent.
This could &ldquo pave the way for Singtel&rsquo s own sell-down of (Airtel&rsquo s) shares&rdquo , he added, noting that Singtel has stated that it plans to pare down its stake in Airtel to match the Mittal family&rsquo s stake.
Its Thai associate AIS also posted strong operating performance, with growth in both its mobile and fixed broadband businesses.
&ldquo Any upgrade to regional associates&rsquo dividend target of S$1 billion would hinge on tight control over macro and inflation risks,&rdquo Muckensturm added.
Operating revenue was largely stable at S$3.39 billion, compared with S$3.41 billion in the year-ago period, despite a 7 per cent depreciation in the Australian dollar.
Looking ahead, the group expects its data centre business to be a &ldquo bright spot&rdquo for financial year 2026 with the completion of Nxera&rsquo s data centres in Thailand and Singapore.
&ldquo We remain focused on solid execution and operating discipline to drive sustainable growth,&rdquo Singtel said.
DBS&rsquo Mittal expects the Singapore telco business to benefit from the recent sector consolidation over the next nine to 12 months.
CGSI expects the recent proposed consolidation of Simba and M1 to have a &ldquo largely neutral&rdquo effect on Singtel group earnings in FY2026.
&ldquo However, unless the merged entity shifts its focus to cash flows and profitability, there is an increased risk to Singtel Singapore&rsquo s mobile revenues,&rdquo it added.
DBS maintains a &ldquo buy&rdquo for Singtel, with an unchanged target price of S$4.58. CGSI, on the other hand, maintained its &ldquo hold&rdquo call for the counter, with an unchanged target price of S$4.10.
Senior
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Supreme
Yells: "Cast all our anxieties on Jesus for He cares for us"
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By then , singtel already fly to the moon
Business is really good for Singtel
gosharej ( Date: 13-Aug-2025 15:03) Posted:
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Senior
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Supreme
Yells: "Cast all our anxieties on Jesus for He cares for us"
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10 dollars
Senior
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Once break 4.10 and above it will easily move to 4.2 and 4.3.
Supreme
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Elite
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Hope you are near enough to get Singtel' s autograph.
Potato ( Date: 13-Aug-2025 10:38) Posted:
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Master
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Delvyss ( Date: 13-Aug-2025 10:14) Posted:
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Elite
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MrBear12 ( Date: 13-Aug-2025 10:09) Posted:
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Supreme
Yells: "Cast all our anxieties on Jesus for He cares for us"
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Delvyss ( Date: 13-Aug-2025 10:02) Posted:
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Elite
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Supreme
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Supreme
Yells: "Cast all our anxieties on Jesus for He cares for us"
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using pe multiple of 16 and eps of 25. Multiply together you get 400.
I expect eps to rise further and market may apply a pe multiple of 20. That' s how we get 500
so bring on the five series!
otherwise, go ask Luke what to do
Supreme
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Yells: "Always focus on Fundamentals!"
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https://www.minichart.com.sg/2025/08/12/simba-to-acquire-m1-how-singapore-telco-consolidation-benefits-singtel-and-starhub-1/
Broker: Maybank Research Pte Ltd
Date of Report: August 11, 2025
Simba&rsquo s Acquisition of M1 Set to Reshape Singapore&rsquo s Telco Landscape: Impacts on Singtel, StarHub, and Market Competition
Executive Summary: Major Shakeup in Singapore&rsquo s Telecom Sector
The Singapore telecommunications sector is on the brink of transformation as Simba announces its acquisition of M1 at an enterprise value (EV) of SGD 1.43 billion. This landmark move marks a pivotal moment for industry competition, market share distribution, and future growth for all major telcos in Singapore. The deal&rsquo s implications ripple across Singtel, StarHub, and the wider telecom ecosystem, promising both rationalized competition and new opportunities for investors.
Simba&rsquo s Acquisition of M1: A Strategic Leap Towards Market Rationalization
Simba, a subsidiary of Tuas Limited (TUA ASX), will acquire M1 (owned by Keppel, KEP1 SP) at an EV/EBITDA multiple of 7.3x (excluding M1&rsquo s ICT EBITDA). The consolidation is expected to bring much-needed equilibrium after years of aggressive competition, triggered initially by Simba&rsquo s entry as the fourth operator in 2020 and further intensified by incumbents&rsquo responses through cheaper digital brands and partnerships with mobile virtual network operators (MVNOs).
Combined Market Share: Post-merger, the telco landscape would see Singtel (ST) holding ~55%, StarHub (STH) ~24%, and the combined M1+Simba entity ~22%.
Competition Dynamics: MVNO contracts, generally lasting 3-5 years and limited in sales reach, mean the market is primed for a reduction in aggressive competition as consolidation proceeds.
Rational Pricing Ahead: With Simba and M1 set to merge, there is little incentive for destructive price wars, as both operators would risk self-inflicted losses.
StarHub: Unexpected Beneficiary with Strong Dividend Prospects
Market expectations had leaned towards a potential StarHub-M1 tie-up. However, the Simba-M1 merger is more strategically sound given Simba&rsquo s smaller market presence (~5% pre-merger), which otherwise would not have been enough to rationalize competition.
Network Synergies: StarHub and M1 already operate a singular 5G access network. The inclusion of Simba&rsquo s spectrum into this shared infrastructure will enhance overall network efficiency without requiring StarHub to shoulder the cost of complex integration.
Dividend Certainty: As StarHub avoids the heavy lifting of industry consolidation, its dividend outlook is clearer and more secure.
Network Differentiation: While the merged entity will gain additional spectrum and network superiority, the impact is expected to be modest, as robust network coverage is already a given across Singapore.
Singtel: Limited Direct Impact but Attractive Growth Trajectory Maintained
Singtel stands to benefit from a more rational competitive environment, though the effect is relatively muted given that Singapore consumers account for less than 10% of its sum-of-the-parts (SoTP) valuation. The company&rsquo s operational momentum remains positive across all segments and associates.
Growth Drivers: Singtel&rsquo s performance is buoyed by strong contributions from all operating units and associates, with the Singapore Consumer segment positioned to benefit from consolidation-led stability.
Recommendation: The report maintains a BUY rating on Singtel, citing the group&rsquo s overall positive trajectory and growth in key associates.
Company Financial Snapshot & Valuations
Stock Bloomberg Code Market Cap (USD&rsquo m) Rating Price (LC) Target Price (LC) Upside (%) P/E (25E) P/E (26E) P/B (25E) P/B (26E) Div Yield (25E %) Div Yield (26E %)
Singtel ST SP 51,146 Buy 3.98 4.30 13 22.9 24.1 2.2 2.4 5.0 4.8
StarHub STH SP 1,644 Hold 1.22 1.10 (4) 13.7 13.3 3.2 3.1 5.3 5.6
Detailed Company Analysis
Simba (Subsidiary of Tuas Limited, TUA ASX)
Unlisted subsidiary, entered Singapore in 2020 as the #4 mobile operator.
Has driven aggressive competition, prompting incumbent telcos to launch budget-friendly digital brands and MVNO partnerships.
Post-merger with M1, Simba will hold a ~22% combined market share, reducing its need for ultra-aggressive tactics.
M1 (Owned by Keppel, KEP1 SP)
Subject of Simba&rsquo s acquisition at an EV of SGD 1.43 billion, based on 7.3x EV/EBITDA (excluding ICT EBITDA).
Brings scale and spectrum to Simba, contributing to a more balanced three-player market structure.
StarHub (STH SP)
Current market share of ~24%, operating in a shared 5G access network with M1.
Poised to benefit from the Simba-M1 merger through shared network synergies, without bearing integration costs.
Dividend outlook remains stable and robust.
Analyst rating: HOLD, with a forecasted modest downside (-4% upside) and dividend yields above 5% for 2025 and 2026.
Singtel (ST SP)
Dominant market leader at ~55% share.
Likely to see only moderate direct benefit from the merger, as Singapore consumer revenue forms a small portion of its overall SoTP.
Retains a BUY rating due to broad-based operational strength and growth across associates.
Forecasted dividend yields of 5.0% (2025) and 4.8% (2026), with price upside potential of 13%.
Key Market and Industry Takeaways
Industry Consolidation: The Simba-M1 merger is poised to usher in a more rational pricing environment, with less incentive for cut-throat competition.
Network Quality: While the merged entity will improve spectrum and possibly network quality, Singapore&rsquo s telco market already enjoys strong coverage, limiting differentiation opportunities.
MVNO Impact: With most MVNO contracts short-term and limited in reach, their influence on market competition will likely wane as consolidation takes hold.
Dividend Visibility: StarHub, in particular, stands out for investors prioritizing dividend stability, benefiting from industry changes without bearing integration risks.
Conclusion: A New Era for Singapore Telcos
The acquisition of M1 by Simba signals the dawn of a more rational and potentially profitable phase for Singapore&rsquo s telecommunications market. While Singtel continues to chart its growth story with limited impact from this deal, StarHub emerges as a beneficiary of network synergies and dividend certainty. Investors should monitor this evolving landscape as consolidation paves the way for improved financial health and sustainable competition among the city-state&rsquo s leading telecom operators.