SingTel - Small Bump On The Road; Still Set For Recovery
- SingTel (SGX:Z74)'s 3QFY22 core net profit of S$473m (-1% y-o-y, -11% q-o-q) missed due to associate earnings.
- Weaker Group Enterprise earnings offset by Consumer and associates y-o-y.
- Post-3QFY22, we cut FY22-24F core EPS forecast for SingTel by 5-6%, mainly after factoring in lower SG earnings (slower post-COVID-19 roaming recovery, lower device sales). We now see core EPS rebounding 13% y-o-y in FY22F, then rising 30%/17% y-o-y in FY23F/24F
- Reiterate ADD call on SingTel with 14% higher target price of S$3.30. Our SOP-based target price rises due to higher fair values for associates (+S$0.40), led by Bharti (+S$0.26; 20% discount to Bloomberg consensus target price).
- SingTel is our top SG telco pick.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
FOONG Choong Chen CGS-CIMB Research | Sherman LAM Hsien Jin CGS-CIMB Research | https://www.cgs-cimb.com 2022-02-16 2022-02-16
Read also CGS-CIMB's most recent report:
2022-11-10 SingTel - Special Dividend Makes Up For Earnings Miss
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Listing of broker reports at SingTel Analyst Report.
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SingTel Dividends & Corp Actions,
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