SingTel - DBS Research 2023-10-04: Would Record Holding Company Discount Narrow?

SingTel - Would Record Holding Company Discount Narrow?

SingTel (SGX:Z74) | SGinvestors.ioSingTel (SGX:Z74)
  • SingTel's share price is trading at record holding company (HoldCo) discount of 47% vs last 5-year average of 31%. HoldCo discount has expanded from less than 15% in FY18 to 47% currently, due to a 59% decline in its core operating profit (excluding associates) over the last 5-years. We expect HoldCo discount to narrow to 15-20%, led by a steady rise in its core operating profit.
  • - Read this at -

2 key drivers for SingTel’s core operating profit in 3QFY24F (Oct to Dec 2023).

1. Optus to benefit from tariff hikes effective from Aug and Nov 2023 onwards.

  • - Read this at -
  • On the non-mobile side, Optus has raised pricing for NBN 25 and NBN 50 by A$1 and A$6 per month respectively for new customers, effective from Nov 2023. According to the Australian Competition and Consumer Commission (ACCC), NBN 50 plans are the most popular internet option in Australia, accounting for 52% of the total.
  • More importantly, its key competitor - Telstra has raised the pricing of its mainstream post-paid plans by A$4-6 per month from July 2023 onwards. Optus is also expected to raise pricing on its mainstream postpaid plans in response over the next few months.
  • Optus is taking more time to raise pricing as it is waiting for virtual operators (~25% subscriber share) to raise pricing to defend its market share. Both Telstra and Optus are in the process of raising their wholesale pricing to these virtual operators as and when their wholesale contract comes for renewal.

2. S$30m rise in operating profit each quarter from 3QFY24F onwards following the sale of Trustwave.

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Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Sachin MITTAL DBS Group Research | 2023-10-04

Previous report by DBS:
2023-02-09 SingTel - ROIC ~ Another Key Share Price Catalyst.

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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