SingTel - Phillip Securities 2024-05-27: Down Under Is Turning Around

• SingTel (SGX:Z74)'s 4QFY24 revenue was within expectations, with FY24 revenue at 97% of our forecast. EBITDA exceeded 105% of forecasts due to higher other income and Optus margins. The final dividend was raised by 13% to 6 cents and an inaugural “value realisation dividend” (or recurrent special) of 3.8 cents.
• - Read this at SGinvestors.io -
• We see multiple earnings and drivers for SingTel's share price. These include
  1. S$200mil p.a. cost down in Australia and Singapore. FY24 combined headcount is down almost 7% y-o-y;
  2. S$300- 400mil EBITDA opportunity in GPU-as-a-Service;
  3. - Read this at SGinvestors.io -
  4. recovery in associate earnings post current de-valuation in Airtel Africa, growth in home broadband and higher mobile prices.
• We maintain BUY on SingTel with a higher target price of S$3.00 (previously S$2.80). SingTel's dividend yield is now 6.2%.

The Positive

Margin recovery in Optus.

• Read more at SGinvestors.io.

Paul Chew Phillip Securities Research | https://www.stocksbnb.com/ 2024-05-27 SGinvestors.io

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