- For 1Q24, StarHub reported higher PATMI (+8.1% y-o-y), driven by the enterprise business segment but offset by the group’s consumer businesses. In view of StarHub’s lush 2024 dividend yield of 6.3%, we maintain BUY with the same StarHub target price of S$1.41.
- - Read this at SGinvestors.io -
Stable 1Q24 results.
- StarHub (SGX:CC3) reported stable 1Q24 revenue (-0.1% y-o-y) and higher PATMI (+8.1% y-o-y), accounting for 23% and 24% of our full-year forecasts respectively. This is in line with expectations.
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- We understand that about S$15m of DARE+ investments were incurred in 1Q24 and that roughly S$85m remains for 2024. Management noted that the group is now frontloading the remaining DARE+ investments to 2024 and this is expected to be completed by end-4Q24 (end-1Q25 previously).
- 1Q24 PATMI margins expanded by 0.6ppt y-o-y, driven by realisation of DARE+ benefits (capex to opex model) and lower net finance costs.
Performance in line.
- Read more at SGinvestors.io.
