- With StarHub's share price trades at 12x P/E and 6x EV/EBITDA, valuations are cheap both in the relative and historical context. StarHub's dividend yield at 6% is at the top end of its ASEAN telco/SG peers.
- - Read this at SGinvestors.io -
- Potential mobile consolidation, led by StarHub, remains an upside catalyst.
DARE+ cycle coming to an end, time to reap benefits
- 2024 is the last year of elevated DARE+ initiative with targeted investment of S$80m. Targeted benefits should be visible from 2025 onwards in the form of lower capex (BAU capex of 4-7% of sales vs current levels of 11- 13%) while StarHub's operating expenses should reduce as it progressively eliminates legacy platforms as the newer platforms (and linked costs) are already in place.
- - Read this at SGinvestors.io -
- Backed by lower costs and capex, we forecast 10% earnings CAGR for StarHub over 2023-26E.
Industry consolidation remains a potential catalyst
- Read more at SGinvestors.io.
