- 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.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://maybanktrade.com.sg/.
Hussaini Saifee Maybank Research | https://www.maybank-ke.com.sg/ 2024-04-16
Previous report by Maybank:
2023-11-08 StarHub - Ramping Up Investments; 9MFY23 Earnings Exceed Expectation.
Price targets by 5 other brokers at StarHub Target Prices.
Listing of research reports at StarHub Analyst Reports.
Relevant links:
StarHub Share Price History,
StarHub Announcements,
StarHub Dividends & Corporate Actions,
StarHub News Articles
