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.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2025-02-20 Singtel - HoldCo Discount At 34% Is Too High To Sustain.

Previous report by DBS:
2024-10-15 SingTel - Can HoldCo Discount Narrow To 10%?.

Price targets by 6 other brokers at SingTel Target Prices.

Listing of research reports at SingTel Analyst Reports.

Relevant links:
SingTel Share Price History,
SingTel Announcements,
SingTel Dividend Payout Dates & Corporate Actions,
SingTel News