SingTel - RHB Invest 2023-05-26: ROIC Trending Up; Keep BUY

SingTel - ROIC Trending Up; Keep BUY

SingTel (SGX:Z74) | SGinvestors.ioSingTel (SGX:Z74)
  • SingTel (SGX:Z74)'s FY23 results missed on AUD weakness, albeit. with the highest dividend payout since FY19.
  • With FY23 return on invested capital (ROIC) rising to 8.3% (FY22: 7.3%), SingTel's management has set a new low double-digit target in the medium term.
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A miss on FX, albeit, good operational showing with ROIC at 8.3%.

  • 4QFY23 core earnings of S$489m (-12.5% q-o-q, +4.4% y-o-y) brought SingTel's FY23 (Apr 2022 to Mar 2023) core earnings to S$2.05bn (+7% y-o-y), at 90% of our forecast (consensus: 93%) with the key deviation coming from the weaker AUD (-6% year-to-date).
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  • The positive offsets were from associate contributions (+6.1% year-to-date) on Airtel’s outperformance and lower depreciation expense.
  • A final dividend of S$0.053 (FY22: S$0.048) puts SingTel's FY23 full-year dividend at S$0.149 (including special dividend of S$0.05), the highest since FY19 with ordinary dividend of S$0.099 at the top-end of its 60-80% payout, ahead of our and market expectations. See SingTel's dividend date.

Roaming revenue roars back.

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Singapore Research RHB Securities Research | 2023-05-26

Read also RHB's most recent report:
2024-02-26 SingTel - FX Rates & Misses From Associates; Keep BUY.

Previous report by RHB:
2023-11-10 SingTel - The Optus & Dividend Optics; Keep BUY.

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 Dividends & Corporate Actions,
SingTel News Articles


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