SingTel - Maybank Research 2024-04-16: 42% HoldCo Discount Unfair Amid Multiple Catalysts

• SingTel (SGX:Z74)’s HoldCo discount (holding company discount) has widened to 42% with key investor concerns centred on Optus and sustainability of SingTel's dividends.
• - Read this at SGinvestors.io -
• We also think SingTel will continue to regularly divest its stake in Bharti, in case Bharti doesn’t raise its payout meaningfully. This could result in elevated dividend payouts and/or share buyback translating to a sustainable 5-6% forward yield.

Potential Optus rejig could improve FCF/ROIC

• Besides cyberattack and network outage, in the past 10 years, Optus weighed heavily on SingTel with its ROIC falling to just 1% while consuming ~28% of the group OPCF+associate dividends.
• - Read this at SGinvestors.io -
• Additionally, competition in Australia is improving and various cost rationalization initiatives are underway. We think the street is not fully appreciating this. Our Optus REV/EBITDA estimate is 3-6% ahead of street.

Bharti stake sale should be seen as regular cash-flows

• Read more at SGinvestors.io.

Above is an excerpt from a report by Maybank Research.
Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.

Read also Maybank's most recent report:
2025-11-14 Singtel - Core Growth Solid; New Engines Emerging – Reiterate Buy.

Previous report by Maybank:
2025-11-07 Singtel - Thoughts On 0.8% Airtel Stake Sale & Potential DC Deal.

Price targets by 2 other brokers at Singtel Target Prices.

Listing of research reports at Singtel Analyst Reports.

Relevant links:
Singtel Share Price History,
Singtel Announcements,
Singtel Dividend Payout Dates & Corporate Actions,
Singtel News