SingTel - 2HFY22 In Line; Bharti To Lead Recovery
- SingTel (SGX:Z74)’s 2HFY22 core net profit came in at S$941m, up 4.9% y-o-y (-4.3% h-o-h). This was mainly due to a turnaround in Bharti’s earnings, partly offset by lower Singapore, Optus and other associates’ profits. Singtel positively surprised by declaring a 2HFY22 dividend of S$0.048. This brings full-year dividend to S$0.093 (80% payout) vs our projected S$0.089 (75% payout).
- For FY23, SingTel projects lower dividends of S$1.1bn ( FY22: S$1.38bn) from the regional associates and higher capex of ~S$2.6bn (FY22: S$1.9bn).
- For FY23F, we expect SingTel's Singapore earnings to grow 24% y-o-y on higher mobile revenue, better device sales and lower content cost.
- We do not see a rebound in Optus’s FY23F earnings due to a further drop off in NBN migration fees, plus higher depreciation and net finance cost.
- We see improving prospects in Indonesia as competition is easing, with various players optimising tariffs in Mar-Apr.
- We tweak our FY23F/24F core earnings per share forecast for lower Singapore, Optus, Telkomsel and Bharti (consensus) earnings. Our target price for SingTel fell mainly due to the increase in the risk-free rate to 2.75% (previous: 2.5%).
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 2022-05-30 2022-05-30
Read also CGS-CIMB's most recent report:
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