SingTel - Phillip Securities 2023-08-23: Currency Down, Margins Under

SingTel - Currency Down, Margins Under

SingTel (SGX:Z74) | SGinvestors.ioSingTel (SGX:Z74)
  • SingTel (SGX:Z74)'s 1QFY24 (Apr to Jun 2023) revenue and EBITDA were within expectations at both 23% of our FY24e forecast. The 9% decline in the Australian dollar and drop in Optus margins were the drag on earnings.
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  • Optus remains the weakest spot for the group with EBIT declining 28% y-o-y in local currency terms to S$56mil. Despite the larger revenue and market size, Optus EBIT is only 23% of Singapore operations.
  • Upgrade SingTel to BUY with lower target price of S$2.80 (previously S$2.84).
  • Valuations are attractive but any re-rating for SingTel will come from its S$6bn asset monetization efforts, better cost controls at Optus, mobile price restoration and broadband growth.

The Positives

Stellar performance for Bharti.

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  • The earnings growth at Bharti was before the exceptional loss of S$114mil from a devaluation of the Nigerian Naira (14 June) and fair value loss from its foreign currency convertible bonds.

Digital Infraco, the new source of growth.

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

Paul Chew Phillip Securities Research | 2023-08-23

Read also Phillip's most recent report:
2023-08-27 SingTel 2023 Investor Day - Directionally Healthy.

Price targets by 4 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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