SingTel - DBS Research 2022-11-11: Growth & Yield Mix @ 34% HoldCo Discount

• SingTel (SGX:Z74)'s 1HFY23 (Apr to Sep 2022) underlying net profit of S$1.01bn (+2.1% y-o-y) was 6-7% below our estimates; mainly due to sharp drop in NCS contribution and weaker AUD.
  • NCS operating profit declined by 49% y-o-y to S$53m despite a 16% rise in revenue as SingTel tries to adjust NCS’s operating model as it grows into a pan-APAC IT services provider.
  • - Read this at SGinvestors.io -
• Regional associates’ pre-tax contribution grew by 10.6% y-o-y to S$1,157m, in line with our expectations. A stronger-than-expected Bharti’s contribution of S$336m (+129% y-o-y) more than offsets weaker contributions from Telkomsel (S$455m down 4% y-o-y) and AIS (S$139m down 13% y-o-y). Bharti benefits from higher data usage and tariff hikes in India. See SingTel's announcement dated 10 Nov 2022.

Special dividend surprise.

• - Read this at SGinvestors.io -
• See SingTel's Dividend History.

Growth momentum in Optus is expected to be impacted.

• Read more at SGinvestors.io.

Sachin MITTAL DBS Group Research | https://www.dbs.com/insightsdirect/ 2022-11-11

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