SingTel - Maybank Research 2023-08-29: All-in To Drive ROIC To Low Double Digit By FY2026

SingTel - All-in To Drive ROIC To Low Double Digit By FY2026

SingTel (SGX:Z74) | SGinvestors.ioSingTel (SGX:Z74)
  • We attended the recent SingTel Investor Day where management re-iterated its commitment to improve ROIC (which is tightly coupled with SingTel's share price) to low double-digits by FY26 (FY23: 8%) by:
    1. - Read this at -
    2. reducing its capital intensity further via better management of 5G rollout and more prudent spending,
    3. leveraging on positive price momentum in Airtel to grow ARPU and
    4. unlocking value from asset recycling and capital partnerships to fund growth investment.
  • SingTel also intends to drive EBITDA growth at both NCS and Regional Data Centre (RDC) as it expects these growth engines to account for more than 20% of its EBITDA by FY28E (FY23: 12%).
  • - Read this at -

Rationalising growth for NCS

  • Following 3 levers of growth (client industries, services and geographies) and expanding into Australia through recent acquisition, NCS targets to improve its revenue from FY23’s S$2.7bn to S$5.0bn by FY26E.
  • NCS remains focused on expanding into
    1. enterprise (non-government) projects, and
    2. overseas projects (particularly Greater China and Australia).
  • Management sees longer-term tailwinds from enterprise digitalisation trends, and commented that its bookings momentum is growing quickly from its expansion initiatives.

Attractive opportunity in data centre

  •

Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @

Kelvin Tan Maybank Research | 2023-08-29

Read also Maybank's most recent report:
2024-06-11 SingTel - Optus Wins A Contract Worth AUD578m.

Previous report by Maybank:
2024-05-27 SingTel - Optus Raises Post-Paid Mobile Plan Prices By 5-19%.

Price targets by 5 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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