- We see the stronger GDP growth and peaking interest rates as supportive of Singapore’s telecommunications sector (SG telcos) in 2024F. Sector FY24F EV/EBITDA of 9.4x is fair (-1 standard deviation from historical mean), given the mature stage of the market, and at a premium to the ASEAN-4 average of 6x. This is justified, in part, by superior yields.
Earnings momentum and dividend outlook.
- - Read this at SGinvestors.io -
- SG telcos continue to offer the highest dividend yields among the ASEAN-4 telcos, at 5.5% on average for FY24F. This compares with the 4% in Malaysia, 2.7% in Indonesia, and 3.5% in Thailand. See SingTel's dividends, StarHub's dividends.
Roaming recovery gathers pace.
- - Read this at SGinvestors.io -
- Overall, industry blended mobile ARPU (9M23: +3.3% y-o-y) should be supported by stronger 5G monetisation and rational competition.
SingTel (SGX:Z74) – Stronger ROIC, dividend upside.
- Read more at SGinvestors.io.
Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-01-17
