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Simba takes a bite out of telco market StarHub has most to lose: Maybank
The research house trims the telco&rsquo s FY2025 to 2026 net profit after tax estimates by 4 to 5%
MAYBANK Securities has downgraded its call on StarHub from &ldquo buy&rdquo to &ldquo hold&rdquo and cut its target price to S$1.30 from S$1.44, as it expects stiffer competition in the telco space to weigh on the company&rsquo s growth.
On Tuesday (Oct 29), the research house said that its new target comes as it trims StarHub&rsquo s net profit after tax estimates for financial years 2025 to 2026 by 4 to 5 per cent.
This comes amid rising market share competition in the mobile and fixed broadband (FBB) segment between Simba and the incumbents such as StarHub and Singtel, said analyst Hussaini Saifee.
Saifee pointed out that Simba&rsquo s improving fundamentals and balance sheet, as well as wide average revenue per user gap, compared with the incumbents, suggest that it is &ldquo favourably placed to continue to take market share&rdquo .
He highlighted that Simba &ndash with only 4.8 per cent revenue market share &ndash has achieved a 42 per cent earnings before interest, tax, depreciation and amortisation margin, and is free-cash-flow positive.
&ldquo This came as a positive surprise as telcos in regional markets are not able to achieve this feat even at 15 to 20 per cent revenue market share,&rdquo said Saifee.
Given that Simba&rsquo s mobile plans are priced 50 per cent below the incumbents, the analyst believes the telco is likely to capture a portion of the lower-end consumer segment.
Additionally, Saifee also believes that Simba &ldquo has room to invest in the network&rdquo and potentially establish a foothold in the higher-end market. The telco had recently ventured into the FBB space, in which the analyst projects Simba could take 5 to 6 per cent of the market share.
Therefore, with 41 per cent of StarHub&rsquo s revenue tied to the mobile and FBB segment, Saifee anticipates greater growth challenges stemming from Simba&rsquo s rising dominance.
&ldquo A sustained aggressive Simba may continue to weigh on (StarHub&rsquo s) growth even if the industry undergoes consolidation,&rdquo cautioned the analyst.
As for Singtel, Saifee retained his &ldquo buy&rdquo call on the counter because less than 10 per cent of the telco&rsquo s sum of the parts is driven by Singapore consumers, hence it &ldquo remains relatively shielded&rdquo .
StarHub Everyday DIY between 1.2 to 1.24, soon oil run out cannot move. Last quater gage 3cents divident also can not move
supported above 1.2 and inching up at 1.22 -1.23. hopefully inch up continually and cause a strong break up above 1.3.
$1.54 is just pre-covid price in 2020
DBS valuation is not demanding. This stock is too undervalued.
DBS valuation is not demanding. This stock is too undervalued.
Indeed hope that starhub spin off Ensign quickly when the market is NOW flushed with cash and tech counters valuations is good.
$1.54 will be easy once the spin off date is known
$1.54 will be easy once the spin off date is known
The research from DBS seems to suggest that to reach target price $1.54, it must spin off Ensign first.
freestyle123 ( Date: 18-Oct-2024 09:23) Posted:
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funds behind sold 1.29 last target price, bought back 1.20-1.22 in past 6 months.
obviously wants to push up to 1.54 before 2024 closing. by March 2025, surely hit 1.54.
obviously wants to push up to 1.54 before 2024 closing. by March 2025, surely hit 1.54.
Speediman ( Date: 18-Oct-2024 09:03) Posted:
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Half of Singtel price will be a fair valuation. $1.6
freestyle123 ( Date: 18-Oct-2024 08:20) Posted:
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these bankers need face as well. put too high, cannot reach, lose face.
when it was 1 dollars, he gave 1.29. When 1.29 hit, he gave 1.54.
So, can hit 1.54 in 1 year. once hit, he will give higher target price.
when it was 1 dollars, he gave 1.29. When 1.29 hit, he gave 1.54.
So, can hit 1.54 in 1 year. once hit, he will give higher target price.
vivacious ( Date: 17-Oct-2024 21:11) Posted:
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?StarHub?s cybersecurity venture is a profitable business (excluding D?Crypt) and? we expect the cybersecurity business to go public by FY2024 [or] FY2025, as it achieved operating profit breakeven in FY2023,? says Mittal.
freestyle123 ( Date: 17-Oct-2024 19:53) Posted:
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1.54. Still too low
freestyle123 ( Date: 17-Oct-2024 19:53) Posted:
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https://www.theedgesingapore.com/capital/brokers-calls/starhub-emerges-dbss-telco-pick-telco-expected-benefit-lower-transformation
https://www.eco-business.com/news/starhub-appoints-jaclyn-yeo-from-dbs-as-vp-of-sustainability/
noslen ( Date: 10-Oct-2024 16:43) Posted:
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Just look at last year or last few quarters, a few weeks before result announcement, the share price will be down and after that pick up again
Speediman ( Date: 09-Oct-2024 17:09) Posted:
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I believe their Q3 results will be better than expected...
arkan1111 ( Date: 10-Oct-2024 12:43) Posted:
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I believe business may be not so good. Waiting to buy at 1.1
Speediman ( Date: 09-Oct-2024 17:09) Posted:
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Big Boys trying to flush out weak players by dumping all the way to $1.2?
Keppel & SPH privatised M1 with market cap 1.91 Billion in 2018.
Starhub including Enterprise business is 2.1Billion, enterprice business revenue is 40% and Mobile cum broadband cum entertainment is 60%. Market cap for mobile & network & entertainment is 1.2billion only.
M1 is smaller player in the telcom market. Valuation now merely 1billion.
The biggest stoppage for the merge plan is the selling price of M1, Keppel Cop shall be reluctant to accept any offer price below 1.91 billion which will cause impairment loss to Keppel Corp asset value. Their share price will sink further.
The merge plan is unlikely to happen at starhub share price of 1.23. the share price must be shoot up above 2 dollar to make starhub as 4billion market cap and merge with M1 with exchange share and cash.
I am looking forward the IPO of Starhub Enterprise business which is joint venture with Temasek. Temasek surely will IPO the Enterprice Business when the profit level is high. Starhub share price will be benefit from the IPO as shareholder of Enterprice Business.
Starhub including Enterprise business is 2.1Billion, enterprice business revenue is 40% and Mobile cum broadband cum entertainment is 60%. Market cap for mobile & network & entertainment is 1.2billion only.
M1 is smaller player in the telcom market. Valuation now merely 1billion.
The biggest stoppage for the merge plan is the selling price of M1, Keppel Cop shall be reluctant to accept any offer price below 1.91 billion which will cause impairment loss to Keppel Corp asset value. Their share price will sink further.
The merge plan is unlikely to happen at starhub share price of 1.23. the share price must be shoot up above 2 dollar to make starhub as 4billion market cap and merge with M1 with exchange share and cash.
I am looking forward the IPO of Starhub Enterprise business which is joint venture with Temasek. Temasek surely will IPO the Enterprice Business when the profit level is high. Starhub share price will be benefit from the IPO as shareholder of Enterprice Business.
noslen ( Date: 07-Oct-2024 10:23) Posted:
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yes!
Speediman ( Date: 07-Oct-2024 18:14) Posted:
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Starhub may have 2-3 suitors waiting in the sidelines, just need 1 party to trigger the move.